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Russia and China haggle over price of gas

Disagreement over price continues to hold up a landmark agreement between Russia and China that would pave the way for the supply of up to 68bn cubic metres of Siberian gas to the world’s biggest energy consumer, according to Alexander Medvedev, deputy chief executive of Gazprom.

Mr Medvedev said the two sides still remained far apart on price, but added that an eventual agreement was in the interest of both parties.

“It would be good [to have a deal] because we have a roadmap with a target to sign a contract in the middle of the year. But it’s the natural desire of the buyer to buy cheaper and of the seller to sell higher and actually the current level of negotiation left only one unsolved issue and [that] is the price,” he told the Financial Times in London before flying to Beijing late last week.

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