Gazprom announces $25 billion advance payment deal with CNPC

Gazprom has officially announced that it will receive an advance payment of $25 billion under its landmark deal to deliver natural gas to China.

Gazprom has officially announced that it will receive an advance payment of $25 billion under its landmark deal to deliver natural gas to China.

Gazprom representatives and government officials had previously only said that an advance payment was being negotiated.

"Agreement has been reached with the Chinese side on an advance payment of $25 billion prior to the start of deliveries," Gazprom Deputy CEO Alexander Medvedev said.

"The terms will be agreed. They will include the schedule for disbursement of the advance payment and the schedule for the gas that will be delivered in exchange for the advance and its effect on one or another of the parameters," Medvedev said.

Gazprom and China National Petroleum Corporation (CNPC) signed a 30-year contract on delivery of 38 billion cubic meters of gas a year. The contract is worth $400 billion overall.

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