China has announced on Wedesday that it will buy Russian natural gas in the amount of 400 billion, this boosting President Putin's position in the political setting, Mr. Putin that has been a little isolated recently due to the pending conflicts in Ukraine. The deal of gas purchase will also strenghten the ties of Moscow with the Asian continent.
The price arguments have lasted over 30 years and have addionally taken place during Putin's couple of days visit to Asia when the two sides have finally to decided to close an agreement.
Putin has visited the Asian security conference in Shangai where the Chinese president requested a new model of security that includes Iran and Russia, and exludes the US.
The gas deal gives Moscow an economic boost at a time when Washington and the European Union have frozen the assets of numerous companies in Russia and a few in Ukraine. Also, many Russian officials have been rejected visas. Now the new gas deal allows Russia to have a diversed gas market portfolio, while all the gas currently goes to Erope.
The negotiation "opened the door for Russia to enter into Asia's gas market," has stated Keun-Wook Paik, senior research fellow at the Oxford Institute for Energy Studies.
Politically, the deal has provided "a breathing space for Russia," Paik said. "Russia, and Putin, can demonstrate it's not completely isolated because of the Ukraine crisis. Russia has demonstrated that they have a very reliable strategic partnership with China."
Russia's economy has suffered tremendously after Ukraine has announced that it would favor the European union, and has been quick to annex Crimea in March. Now with the new gas deal new doors will open for the Russian economy, and its new position in the gas market.
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