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Russia’s attempts to conclude a major gas pipeline deal with China have run aground over what Moscow sees as Beijing’s unreasonable demands on price and supply levels, the Financial Times reported on Sunday citing three people familiar with the matter.

China had asked to pay close to Russia’s heavily subsidised domestic prices and would only commit to buying a small fraction of the pipeline’s planned annual capacity of 50 billion cubic metres of gas according to the report. Russia has been in talks for years about building the Power of Siberia-2 pipeline to carry 50 billion cubic metres of natural gas a year from the Yamal region in northern Russia to China via Mongolia.

Russian Deputy Prime Minister Alexander Novak said last month that Russia and China expect to a sign a contract “in the near future” on the Power of Siberia-2 gas pipeline.