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China,Russian Federation : SINO-RUSSIAN gas deal would pave way for other countries to trade in own currencies

June 1, 2014

China has finally entered into a 30-year natural gas deal with Russia, after 10 years of negotiation.

Starting from 2018, the deal will see Russian natural gas major Gazprom supplying 38 billion cubic meters of natural gas to China's major oil firm, China National Petroleum Corp (CNPC) annually.

Russia could boost its supplies to as much as 60 billion cubic meters.

While the real value of the deal is yet to be disclosed, most of the sources estimate the deal at around $400 billion.

This mega deal signifies a major step in the global energy markets as well as in the geopolitics over the years to come.

This is particularly true, as China will pay for the natural gas through Russian rubles and Chinese yuan instead of U.S. dollars.

The deal would in this way allow other countries to trade in their own currencies.

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Source: TendersInfo (India)

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