China and Russia sign landmark gas deal

China’s President Xi Jinping and his Russian counterpart Vladimr Putin signed a US$400 billion gas supply deal in Shanghai on Wednesday, Financial Times reported, citing statements from Putin and Russia’s energy minister. Under the deal, which comes after ten years of negotiations, Russian natural gas giant Gazprom (GAZP.MCX) will supply China National Petroleum Corporation (CNPC) with up to 38 billion cubic meters of natural gas per year for 30 years, beginning in 2018. Analysts said the implied price was US$350-$390 per 1,000 cubic meters. Gazprom said it would invest US$55 billion, and China will provide at least $20 billion of investments.