Russia, China Seal Power of Siberia 2 Deal
Russia and China have signed a binding deal to move ahead with the Power of Siberia 2 gas pipeline. The project will send up to 50 billion cubic meters (bcm) of natural gas annually from Russia to China through Mongolia. The agreement was reached during talks in Beijing, with leaders from Russia, China, and Mongolia present.
Expansion of Existing Routes
Alongside the new pipeline, the two sides agreed to raise flows through current supply routes. The Power of Siberia pipeline, which presently carries about 38 bcm, will be expanded to 44 bcm. Gas volumes through the Far Eastern route will also increase from 10 bcm to 12 bcm annually.
Commercial Details Still Pending
Despite the breakthrough, critical commercial terms—including pricing, financing, and construction timelines—are yet to be finalized. Gazprom officials indicated that China will pay lower rates than Europe due to shorter transport distances, but exact figures remain undisclosed.
Strategic Importance
The deal highlights Moscow’s pivot toward Asia as Western sanctions reduce European demand for Russian energy. Analysts note that the agreement strengthens Beijing’s leverage in negotiations, leaving China in a stronger position to shape future energy arrangements.
