In a gas supply deal between Russia and China, it will be China who sets the price.
That’s according to Ilya Zaslavskiy an expert in Russian oil from Chatham House. Speaking at International Petroleum Week yesterday Mr Zaslavskiy was discussing the effects of greater ties between China and Russia when it comes to gas trading.
He told ELN: “How will a Russia China gas deal influence oil price? Will it be the price setter, will it make everyone else do the same price or will China make Russians do what they have been doing with everyone?
“So my statement is that it’s the second, basically China sets the price for central Asians and they will do the same for Russians and the price is quite low it’s different for Europeans and it will stay like that. That’s my argument.”
But Mr Zaslavskiy added he believes the impact of the Russian-Chinese gas deals on global trading will be negligible because of the small volumes. In November 2014, Russian signed a second deal on gas supply with China.