Russia sells gas to China at steep discount

Russia is selling natural gas to China at a significant discount compared to European prices, according to Bloomberg sources. This year, the average price for China is $258.80 per 1,000 cubic meters, over 38% lower than the average offered to remaining European buyers. The price gap is expected to narrow gradually over the next three years but will still exceed 27% by 2029, with annual supply volumes projected to rise to 52.5 billion cubic meters via the Power of Siberia pipeline. Gazprom CEO Alexei Miller previously stated that lower prices for China are due to proximity of gas fields to Asian consumers.