Putin and Xi revisit Siberian pipeline talks amid tensions
Russian President Vladimir Putin and Chinese President Xi Jinping are meeting in Moscow. The Russian leader aims to discuss the Power of Siberia 2 pipeline project again. Negotiations have been ongoing since 2022, but no agreement has been finalized.
According to Bloomberg, during Xi Jinping's visit to Moscow, which coincides with the Victory Day celebrations, Russian President Vladimir Putin plans to revisit the discussion on constructing the Power of Siberia 2 pipeline.
The project is crucial from the Russian perspective. Putin proposed it in 2022 to bolster Russian gas supplies to China.
After losing the European market, the pipeline holds enormous significance, according to Bloomberg, as it would allow for the redirection of supplies from Western Siberian deposits to Asian markets.
China has not yet agreed to the project, demanding that the gas price be comparable to what Russia offers domestically. However, according to "Bloomberg" sources, Beijing might be willing to accept the price, potentially paving the way for construction to commence. Nevertheless, a final agreement is not expected to be signed during Xi's current visit.
The first Power of Siberia pipeline has been operational since 2019 and will reach a full capacity of approximately 38 billion cubic metres per year by the end of 2023.
If realized, the second phase of the project is expected to transport gas from Russia's Yamal deposits to China through Mongolia. However, Chinese officials prefer a more direct route that bypasses Mongolia.
