China, Russia sign agreement for natural gas

China National Petroleum Corp and Russia's Gazprom signed an agreement to export gas to China through the eastern pipeline.

The agreement was signed in the Russian city of St. Petersburg. Chinese President Xi Jinping, who was there to attend the Group of 20 meeting, witnessed the signing ceremony with his Russian counterpart, Vladimir Putin, after meeting together.

China and Russia have negotiated gas supplies for more than a decade, with the price being the focus in recent years. Under a memorandum of understanding the two countries signed in March, Russia will supply 38 billion cubic meters of gas to China annually from 2018. The volume is expected to increase to 60 billion cubic meters in following years. Gazprom said in March that the price discussions are expected to be finished before the end of the year.