RIA Novosti citing Mr Sergei Shmatko Energy Minister said on Friday following Moscow failure to sign a long-awaited 30 year gas deal with Beijing that China does not want to pay Russia a price that is tied to the European gas price formula.

Mr Shmatko told Rossiya 24 TV channel at the St Petersburg International Economic Forum that "We are in a good and confidential dialogue with our Chinese colleagues. They are protecting their national interests and tell us in detail why they consider gas supplies at a European formula slightly unfair."

Mr Alexander Medvedev head of the export arm of Russia gas giant Gazprom said earlier on Friday that Gazprom and China oil and Gas Corporation CNPC would not sign a gas supply contract which could be worth up to USD 1 trillion.

Under the contract, Gazprom would deliver up to 68 billion cubic meters of gas to China. It sells about 150 billion cubic meters a year to Europe.

Mr Shmatko said "There has been no signing because the partners have not come to a final agreement on price. I see nothing terrible here. The contract will be signed for 30 years and if someone feels circumvented now, it will be felt in business sooner or later, believe me."

He said that "The parties need to check documents carefully, get political support at the highest political level and after that I think we will witness a unique energy deal."

(Sourced from RIA Novosti)