Gas price for Power of Siberia 2 pipeline to China essentially based on same formula as for past exports to Europe - Putin

VLADIVOSTOK. Sept 5 (Interfax) - The price of Russian gas that will be exported through the future Power of Siberia 2 pipeline to China is calculated according to the same kind of formula as for gas exports to Europe, President Vladimir Putin said at the plenary session of the Eastern Economic Forum.

He said the prices are market-based and "calculated according to essentially the same formula as [those that were] calculated in supplies to Europe."

"The formula is the same. But the components of this formula, prices for various products on which the price for gas is based, are simply different in different regions of the world. In Europe it's one price, in Asia another. But the formula for determining the price is one and the same. It's absolutely market-based," Putin said.

"These were lengthy negotiations," Putin said, but participants in economic activity fully understand that this is not a simple process. "However, everyone strives to achieve a result that serves the interests of both contracting parties. Such a result has been achieved through years of joint work between Gazprom and its Chinese partners. I can once again congratulate everyone," Putin said.

As reported, Gazprom signed a binding memorandum on constructing the Power of Siberia 2 gas pipeline to China with a capacity of 50 billion cubic meters of gas per year.