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Kremlin states there is no doubt that gas pipeline deal with China will be clinched

Russia said on Monday there was no doubt it would reach an arrangement with China to develop the brand-new Power of Siberia 2 gas pipeline, after a Financial Times report said the deal had stalled over Chinese price needs.

The feet said China had actually asked to pay near Russia's heavily subsidised domestic rates and would just dedicate to buying a. small fraction of the pipeline's organized yearly capacity of 50. billion cubic metres of gas.

Kremlin spokesman Dmitry Peskov informed reporters there was. political will from presidents Vladimir Putin and Xi Jinping to. reach a deal, so talks on the pipeline would continue, however the. commercial aspects were not to be made public.

It is entirely regular that each country defends its. own interests, he said.

The process of contract of commercial issues will. continue, and we believe that all required agreements. will be reached.

Putin and Xi had agreed to deepen their discussion over. energy when the Russian leader went to Beijing last month,. Peskov stated.

Russia has become China's top oil provider thanks to. Moscow's push to divert its trade far from Europe because of. Western sanctions over Ukraine.

But talks over the yet-to-be developed Power of Siberia 2. have dragged on for about a years over many problems,. including the cost of the gas.

The project is a scheduled successor to the initial Power. of Siberia pipeline, through which Russia currently pumps gas to. China. Materials began at the end of 2019 and are due to reach. yearly capacity of 38 bcm in 2025.

(source: Reuters)