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China and Russia fail to agree on gas deal

A framework agreement was signed between Gazprom (Russia) and China National Petroleum (CNPC) Corp that promised 70 billion cubic metres of natural gas through pipelines from Russia to China. This natural gas supply deal between China and Russia failed to materialize due to differences of opinion over price.

Hope was rampant that Russia and China would work out on the finer details and finalize the deal in time to make the announcement on Chinese President Hu Jintao's visit to Russia.

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