Talks between Moscow and Beijing on future supplies of Russian gas would be easier if the two first settled a dispute between Russian and Chinese companies over the price of current oil supplies,21645-51-2 Russias Deputy Prime Minister Igor Sechin was quoted Thursday as saying.



Russias gas giant Gazprom is closely watching the talks over the oil price, Sechin said in the West Siberian settlement of Purpe, according to the Prime-Tass news agency.



Russia expects to discuss the issue with Chinese partners in late May when a delegation headed by Chinas Vice Premier Wang Qishan visits Moscow, Sechin said.



Russian companies Rosneft and Transneft export oil to China under initial agreements reached with Chinas National Petroleum Corp., Sechin was quoted as saying.



But CNPC wants to change a coefficient -- a transportation fee set by the Russian government -- used in the oil price formula, Sechin said.



He said the agreements were in contracts and Russian companies were protected by the documents under international law.



In April, Russias Transneft said it had incurred a loss of more than $20 million a month due to underpayment by China for crude oil supplied via the ESPO pipeline to China since January. The Russian company did not rule out filing a lawsuit in London to recover those losses.



Platts reported previously, 60-29-7 citing a source familiar with the matter, 91-01-0 that China unilaterally reduced the price it paid for the ESPO supplies as it believes transportation cost across Russia should be more than 6% lower than stated in the crude supply contract.