17 Nov 2014 15:50

Russia will not sell gas to China on unprofitable conditions - Russian ambassador

BEIJING. Nov 17 (Interfax) - Russian Ambassador to China Andrei Denisov said the allegations that Russia has signed the gas agreements with China on unprofitable conditions are groundless.

"I think these allegations are largely unprofessional. Sometimes it's surprising how people can even think about such things, let alone allege them. You get the impression that those who say that sat under the table and heard what the negotiating parties were talking about,' he said in an interview with Interfax.

Denisov also reiterated that the Russian government is not involved in the discussion of commercial issues relating to the supply of gas to China.

"As an ambassador and a representative of the state, I can say that the government does not even come close to discussing any commercial conditions. It's not our game. Our task is to provide political support, support the achievement of intergovernmental agreements that determine the framework for closing such deals," the diplomat said.

"Speaking about signing a commercial contract, I am convinced that our negotiations would never agree to conditions that hurt our interests. We would never sell anything at our own loss, I am absolutely convinced of that," he said.

Speaking about the cost of Russian gas, Denisov said that "the gas price on the eastern route generally has a flexible framework and Russia can't lose anything."

"Pricing is a very complex and lengthy process. It includes pre-payments, discounts, and the taxes that the buyer and the seller pay to their countries and the cost of building the pipeline and gas supply. In China, the main gas consumers are located in the south, and that means it needs to take into account the construction of a pipeline between 1,500 and 2,000 km long on its territory," the Russian ambassador said.

"For this reason, such hasty and definite judgments on whether we have won or lost are not just wrong, they have no real foundation, there are no arguments and reasons. If there are, let's discuss them," he said.

Commenting on the statements that the signing by Russia and China of the contract on the supply of gas using the eastern route and the memorandum on the supply on the western route are a means of putting pressure on the West, the ambassador said that "the development of our cooperation with China does not pose any threat to anyone."

"Like I said, the global political and economic situation is changing. China understands that Russia is its long-term partner, and it is interested in a long-term partnership, otherwise why would it need these mega-projects? It doesn't expect anything unexpected from Russia, like, for example, happens in relations between our country and Europe. It is building a long-term relationship," he said.