A deal would be the biggest Chinese equity participation in onshore oil in Russia.
TNK-BP, a Russian-British company, is under fire concerning 784 environmental accidents reported in 2011, compared with 20 by rival Lukoil.
Putin prepares to head to New Delhi to approve deal as Moscow looks to expand trade links with Asia.
'The contract in current market parameters is absolutely unprecedented', Putin told investors at the annual Saint Petersburg International Economic Forum.
A renaissance of one of Siberia's first outposts as the Far North becomes the new economic frontier.
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.
Scientists rush to site of latest tundra eruption - which formed a crater 50 metres deep - amid fears for homes and key industrial sites.
Mysterious 'gigantic' hole in remote region spotted by helicopters over gas-rich Yamal peninsula.