China on 21 May 2014 signed a 30-year deal to buy Russian natural gas worth 400 billion US dollars in a financial year. The deal was signed during the Russian President Vladimir Putin visit to China.
Gasport firm of Russia and China National Petroleum Corp signed the agreement. As per the agreement, Gasport will supply 38 billion cubic metres of gas annually to China National Petroleum Corp. The contract is worth a total of 400 billion US dollars.
Besides, Russian President Putin also received the support from Chinese President Xi Jinping over Ukraine crisis. Russia and China issued a statement calling for the de-escalation of tensions in Ukraine and for peaceful and political ways to resolve the existing problems. The two countries referred to the crisis as domestic.
This has come as big relief for Russia which had been facing flak of the Western powers over the Ukraine Crisis since its annexation of Crimea peninsula in March 2014. Besides, this was the only issue on which China hesitated to support Russia in UN Security Council.
The signing of gas deal also has come as a big respite for Russia. The signing of agreement means that now Russia will not have to depend on European countries for selling its gas much and will help Russia overcome the impact of economic sanctions imposed by the US and European countries over the Ukraine crisis.
Chinese support to Russia over Ukraine crisis might be an outcome of the recent conciliatory steps taken by Putin. These steps includes ordering Russian forces massed on the Ukraine border to return to bases and welcomed the initial contacts between the Ukraine government and those calling for more power for largely Russian-speaking regions in the east.
Who: China and Russia
When: 21 May 2014