Russian President Vladamir Putin had been visiting China with the intention of sealing a massive natural gas deal.
LONDON (CNNMoney)
The two sides had been working on a deal for a decade, but the agreement has gained significance with Europe looking to reduce its dependence on Russian gas as relations with Moscow sour over the crisis in Ukraine.
Russia's state-owned gas company, Gazprom, sealed the deal with the China National Petroleum Corporation (CNPC) during a visit by Russian President Vladimir Putin to Shanghai, CNPC and the Russian energy ministry said.
Under the deal, Gazprom will supply 38 billion cubic meters of gas to China each year, with the possibility of increasing shipments to 60 billion cubic meters per year.
The Russian Ministry of Energy declined to comment on the price China will pay for the gas, but they had originally been looking to charge $456 billion over the 30 year term. Price had been the main sticking point ahead of the agreement.
-- CNN's John Defterios in St Petersburg and Cy Xu in Beijing contributed to this article.
First Published: May 21, 2014: 7:32 AM ET
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