Gazprom to increase gas discount for China up to 50% even at a loss

Despite the unprofitable state of the gas business, Gazprom plans to further reduce its gas prices for China. Even with rising prices on the Russian domestic market, Russian gas for China will be offered at significantly reduced prices in the next few years.

This is evidenced by a document of the Russian government, which was reviewed by Reuters. Despite the economic losses, Gazprom intends to sell gas to China at a much lower price than to Europe.

According to the Russian government's project, next year the gas discount for China will increase to 46%, and the price per thousand cubic meters of gas from the Power of Siberia will be $271.6.

By comparison, gas for Turkey and Europe will be sold for $481.7 per thousand cubic meters.

Moreover, Gazprom plans to increase gas supplies to China. While it is planned to supply 22 billion cubic meters of gas to China by the end of 2023, next year the volume of supplies is planned to increase to 30 billion cubic meters.

These steps will allow Russia to maintain its position in the Chinese market and ensure a stable volume of gas exports, even with losses from the gas sector.