Russia, China nearing agreement on gas: Putin

BEIJING (AFP) -- Moscow and Beijing are nearing the "final stage" of negotiating a huge gas deal delayed for years by disagreements on price, Russia's prime minister said Tuesday during a visit to Beijing.

Vladimir Putin made the comments after meeting Chinese Premier Wen Jiabao on the first day of the two-day visit, his first foreign trip since he announced plans last month to reclaim the Russian presidency.

Russia is the world's largest energy producer, and discussions over pumping gas to China -- the world's top energy consumer -- were expected to top the agenda for his visit, during which he will also meet President Hu Jintao.

"We are close to the final stage of work on gas supplies to Chinese market," Putin told journalists.

"Those who sell always want to sell at a higher price, while those who buy, want to buy at a lower price. We need to reach a compromise which will satisfy both sides."

Russian gas giant Gazprom and China National Petroleum Company signed a framework agreement in 2009 that could eventually see almost 70 billion cubic meters of Russian gas sent to China annually for the next 30 years.

But talks have become bogged down in pricing disagreements and contrary to expectations, Hu's June visit to Moscow delivered no breakthrough.

Chinese officials said last November the prices backed by the two sides differed by $100 per 1,000 cubic meters.

Putin's spokesman played down the prospect of any breakthrough during the visit saying the two sides were "not in a hurry".

"It's important to reach agreement, but it is not necessary that it be done in the next few days," Dmitry Peskov told AFP by telephone.

Putin arrived in Beijing a day after Russia and China signed 16 economic and trade deals worth over $7 billion, which China said were "in the fields of technology transfer, research and development and mineral development".

The Chinese foreign ministry gave no further details of the agreements,which were signed at a summit  Monday held ahead of Putin's visit.