China exacts even larger discount on Russian gas as primary importer of sanctioned resource
Next year, Gazprom plans to increase the volume of supplies to 30 billion cubic meters (Photo:Reuters)
China continues to exploit Russian weaknesses in gas export as the country is set to receive heavily discounted petrol from Russia’s state energy company – despite higher gas prices and Gazprom’s loss-making nature, Reuters reported on Sept. 8.
Russia will discount gas to the Chinese market to 46% in 2024, Reuters said.
Gas from the Power of Siberia pipeline will cost $271.6 per 1,000 cubic meters, while the same gas goes for $481.7 per 1,000 cubic meters when sold to Turkey or Europe.
In a sign of its reliance on the Chinese market, Gazprom plans to increase the amount of gas it pumps to China – despite its unprofitability.
The volume of supplies is expected to increase to 30 billion cubic meters in 2024. That’s up from 22 billion cubic meters in 2023.
Gazprom has been operating at a loss throughout 2023, according to recently released financial reports.
Russia sees maintaining energy sales to China as strategically important given limited export alternatives. The country has been offering discounted fuel to its eastern neighbor since Russia first invaded Ukraine in 2014.
China has since become the primary importer of Russian oil.
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