Russia, China Postpone Major Gas Deal

Russia and China today postponed the signing of a major deal to supply Siberian natural gas to China after they failed to agree on a price.

Russian President Dmitry Medvedev announced the delay after his talks with China’s President Hu Jintao at the Kremlin.  

In 2010, Russia’s state-controlled Gazprom and China National Petroleum Company agreed to start the supplies via a yet-to-be-built Altai pipeline in 2015.

Moscow wanted to link the price to oil prices the way it does in Europe, but China considers any European-level price too high.

Meanwhile, the two leaders agreed today that Iran has a right to peacefully use nuclear power.

They also said, in a joint statement, that they were ready to cooperate with each other to seek the resumption of nuclear talks with North Korea.

From Moscow, the two leaders are heading to St. Petersburg to attend Russia’s annual economic forum, where Hu is the guest of honor.

compiled from agency reports

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