Background
Russia and China have deepened their energy partnership since Western sanctions hit Moscow over the Ukraine war. The Power of Siberia 2 pipeline has long been under discussion as a new link to deliver Russian gas to China.
What Happened
Russia agreed to boost natural gas supplies to China and signed a memorandum on building the Power of Siberia 2 pipeline, which would run through Mongolia. However, Gazprom said pricing for the multi-billion-dollar project is still unresolved. The existing Power of Siberia pipeline will also increase capacity to 44 bcm annually from 38 bcm.
Why It Matters
The deal highlights Moscow’s pivot to Asia after losing much of the European gas market. For Beijing, securing energy supplies strengthens resilience against U.S. pressure but China is pushing for steep discounts. If completed, Power of Siberia 2 would be the world’s largest and most capital-intensive gas pipeline project.
Stakeholder Reactions
Gazprom CEO Alexei Miller confirmed the memorandum signing but said pricing would be agreed separately.
Russia’s foreign ministry said Moscow and Beijing have always carried out “pragmatic cooperation” in energy.
Analysts note China is Russia’s largest trading partner and a top buyer of Russian energy, but gas exports to China remain far below Europe’s past consumption levels.
What’s Next
Further negotiations will focus on pricing and construction responsibilities. Progress on Power of Siberia 2 will be closely watched as a sign of how far Moscow can replace lost European markets with China.
with information from Reuters
