Gas supplies to China will be profitable, and the idea of zeroing out mineral extraction tax for the fields that will provide that gas still has to be discussed with the Russian finance Ministry, Economic Development Minister Alexei Ulyukayev told reporters on the sidelines the St. Petersburg International Economic Forum.
Ulyukayev declined to name the price of gas in the contract that Gazprom signed with China's CNPC in Beijing on May 21, saying that the supplies would "definitely be profitable." The 30-year contract to supply up to 38 billion cubic meters of gas per year is worth $400 billion overall.
Asked whether a decision had already been reached regarding zero extraction tax, Ulyukayev said: "This still needs more work, I think. I think the Finance Ministry has a different opinion."
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