Gazprom signed one of its biggest natural gas contracts last week, supplying China with an estimated 38 billion cubic meters of natural gas per year. The deal diversifies Russia's natural gas customer base, which currently supplies 30% of Europe's natural gas, half of which flows through Ukraine.
Russia needs high commodity prices for its oil and gas resources to balance its budget, while China desperately needs cleaner burning fuels while it attempts to crack its own shale resources. Energy analyst Taylor Muckerman believes this deal is just a new energy reliance between Russia and China, but more could be at play.
