ARKANSAS, Oct 13 (Future Headlines)- Russian energy group InterRAO has successfully negotiated a higher electricity price with China to offset a new export duty implemented by Moscow. The agreement paves the way for a return to previous levels of electricity supply after the repair of a transmission line, expected to be operational on October 22.

InterRAO, a state-owned company and the sole electricity exporter from Russia, had earlier announced a 7% price increase for customers in certain countries, including China, due to the new export duty related to the rouble’s exchange rate. The company had also warned of limiting or cutting off supplies for customers who refused to accept the higher prices.

In 2022, China purchased a record 4.7 billion kilowatt-hours of electricity from Russia, positioning itself to potentially become Russia’s second-largest customer after Kazakhstan this year, primarily driven by Russia’s decision to halt power exports to Europe amid the conflict in Ukraine. The price increase agreed upon by the two nations is expected to maintain stable energy trade relations.

Reporting by Sarah White