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China and Russia make a Dubious Deal

It’s being reported China and Russia have just made a deal under which Russia will deliver to China 1.14 trillion cubic meters of gas in thirty 38-billion-cubic-meter shipments.

It’s reported that China will pay $400 billion in total for these shipments.  That means it is getting 1.14 billion thousand-cubic-meter deliveries and paying about $350 per delivery.

Gazprom is getting $485 per thousand cubic meters of gas from Ukraine.

So China is paying $135 less per thousand cubic meters than Ukraine is paying.

That’s if China is actually paying $400 billion, of course. But many sources are saying the deal is worth “as much as” $400 billion, so China could be paying even less.

And of course Gasprom isn’t currently ready to deliver gas to China, there will be significant overhead costs to the company in preparing to do so. Therefore its profit margin, if any at all, will be smaller still.

Did NATO just help China take Russia to the cleaners?

2 responses to “China and Russia make a Dubious Deal

  1. Au ⋅

    Actually Gazprom is getting $0 per thousand cubic meters from Ukraine. Ukraine simply doesn’t pay.
    They only accept price of $285 (that was promised to overthrown Yanukovich) but even shipments made in first quarter (while price was $285) were unpaid.

    • mccusa ⋅

      Putin’s visit to China and a phony gaz deal was total humiliation of Russia – does putin know that from now on Russia is a Chinese province…..?????????

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