Putin: Russia's Gazprom, China's CNPC to Make Gas Payments in Rubles, Yuan in 50/50 Ratio

MOSCOW (Sputnik) - Russia's Gazprom and China's CNPC have agreed to make payments for gas supplies in rubles and yuan in a 50/50 ratio, Russian President Vladimir Putin said on Wednesday.

"I would like to note that yesterday Gazprom and its Chinese partners decided to switch to the ruble and the yuan in a 50/50 ratio when paying for gas," Putin said at a plenary session of the Eastern Economic Forum (EEF) in Vladivostok.

On Tuesday, Gazprom announced signing an agreement with China's CNPC to switch payments for gas supplies to rubles and yuan.

The first gas supplies to China via the Power of Siberia gas pipeline began at the end of 2019, amounting to 4.1 billion cubic meters in 2020 and increasing 2.5 times in 2021 to reach 10.4 billion cubic meters. An increase in the volume of supplies is planned every year to reach the planned annual capacity of 38 billion cubic meters.

Gazprom signed a second long-term contract with China's CNPC in early February 2022 for exports via the Far Eastern route. According to the agreement, the total volume of supplies will grow to 48 billion cubic meters per year. Taking into account the Power of Siberia 2 gas pipeline and its continuation through Mongolia, the Soyuz Vostok pipeline, gas exports to China can be increased by another 50 billion cubic meters per year.

The 7th EEF is held from September 5-8 in Vladivostok, on the Far Eastern Federal University campus. The Sputnik news agency is an information partner of the forum.