China and Russia signed the much-awaited natural gas agreement that would provide Beijing clean energy and Moscow a diplomatic edge in case it gets sanctions for its invasion of Ukraine. 

The agreement significantly puts Russia in a better economic position regarding its exports without relying too much on European customers. Since the Ukraine invasion, Rissia's European relations have faltered and at the lowest since the time of the Cold War. 

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The announcement of the deal took place after Russian President Vladimir Putin and Chinese President Xi Jinping met at a Shanghai conference. 

According to Alexei Miller, chief executive of Gazprom, a partly state-owned producer of natural gas, said the agreement is estimated at US$400 billion. 

"This is Gazprom's biggest contract. We don't have a contract like this with any other company," Miller said.

The deal is seen by many observes and experts as a new kind of partnership between the two countries that historically have mistrusted each other. However, both countries also made diplomatic and economic moves that would counter-balance the influence of the United States in world affairs. 

The newly signed agreement is also strategically advantageous to China. For years, the country struggled with major pollution-related problems that ran parallel with its growing economy. It can now capitalize on Gazprom's supply of clean source of energy to support China's  energy needs. 

With the deal in place, and Putin saying operations "will start tomorrow," Russia will start developing natural gas fields in its backyard, while building pipelines that would cross the borders of China. 

According to Mikhail Krutikhin, energy and oil analyst at Moscow think tank RusEnergy, the infrastructure cost alone is estimated to reach US$70 billion. 

It took nearly 10 years for the agreement to be signed and news surrounding the deal was marred by reports on price disagreements between the two countries. Last Wednesday, the both China and Russia finally reached an agreement, but news on the price per unit of the gas remains undisclosed. 

TagsNatural gas agreement, China-Russia relations, Gazprom, natural gas pipelines, $400 billion