Minister of Energy Alexander Novak is proposing to slash the mineral extraction tax on new developments for quarter of a century.
After months of speculation, parliament and President rubber-stamp deal that will see gas sent to China.
Analysts say opening of LNG facility in Queensland with exports to China could affect Yamal as Pacific countries look to take on Russia in Asia.
Gazprom says operations are 'in full swing' with work due to start soon on iconic pipeline to provide gas on eastern route.
Memorandum of understanding will see construction of major projects including new refinery and upgrade to port.
Construction launched on 3,968 kilometre 'Power of Siberia' gas pipeline.
New rail bridge linking the two countries symbolizes closest-ever economic co-operation between neighbors.
Agreement means Power of Siberia pipe could be delayed, it is claimed.
Hi-tech project would use computer models to predict climate change and help with safe production of oil and gas in Northern Russia.