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China and Russia have been negotiating the deal for more than a decade but had been hung up over the price.
Russia will invest $55 billion in fulfilling the contract, while China will invest at least $20 billion, Putin told Russian reporters in Shanghai. He said the gas price would be based on a formula linked to that of oil and oil products.
Plans call for building a pipeline to link China’s northeast to a line that carries gas from western Siberia to the Pacific port of Vladivostok. The development of a gas center on the Pacific will allow Russia to export to markets in Japan and South Korea.
"Without any overstatement, it will be the world’s biggest construction project for the next four years," Putin said.
Isachenkov reported from Moscow.
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