China and Russia have reached an agreement on the price of natural gas exported from Russia to China, Russian Ambassador to China Sergey Razov told China Business News yesterday.
The price will be pegged to a package of oil prices in the Asian market, said Razov. He also emphasized that the economic return from natural gas exports to China shouldn't be less than that of exports to Europe.
The price agreement is a major breakthrough in the two countries' natural gas export negotiation, which started in 2006 but has frequently stalled because of price divergence.