Highlights
- Gazprom signs a contract to design the Soyuz Vostok air duct system, connected from Russia to China.
- Many agreements between Russia and China has also been reached on gas supply.
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The air duct contract is signed
With the escalated political economy on the international level, Gazprom has signed a contract to design the Soyuz Vostok air duct system, connected from Russia to China. If Russia succeeds in forming a new agreement on gas supply with this Asian country, the Soyuz Vostok air duct will deliver up to 50 billion cubic meters of gas from Russia to China.
The abovementioned agreement also allows Gazprom to construct a connective duct between the air duct systems to the West and the East of this company. In other words, this is tantamount to Russia’s being able to navigate the current gas stream from Europe to China. These actions have assisted Gazprom greatly in minimizing its dependence on the European market on condition that the EU has been imposing sanctions on many Russian businesses and companies.
“Today, the contract has been signed. This means that the project is approaching its implementation phase”, said Alexey Miller, CEO of Gazprom.
Previous contracts of Gazprom and Russia on natural gas
Prior to the Soyuz Vostok gas duct system agreement, Gazprom used to sign a 30-year contract in which it would directly provide China 38 billion cubic meters of gas annually via the Power of Siberia air duct. The agreement was reached in 2014 and implemented 5 years later, in 2019.
Additionally, at the end of this February, Russia has also reached another agreement on gas supply with China in a 25-year period. According to this new contract, Russia will provide 10 billion cubic meter of gas from the Far Eastern mines for China.
However, up till now, Beijing is still sitting on the fence in the Russia – Ukraine crisis. China has encouraged the involved parties to negotiate while pledging to maintain normal trade relations with both Russia and Ukraine.
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