Putin and Xi reignite talks on pivotal Siberian pipeline project
Russian President Vladimir Putin and Chinese Chairman Xi Jinping are set to meet in Moscow. The Russian leader is eager to discuss the Power of Siberia 2 pipeline project again. Negotiations have been ongoing since 2022, but no agreement has been reached yet.
During Xi Jinping's visit to Moscow, aligned with the Victory Day celebrations, Russian President Vladimir Putin plans to revisit the discussion on the construction of the Power of Siberia 2 pipeline, reports "Bloomberg".
The project, crucial from the Russian perspective and proposed by Putin in 2022, aims to increase Russian gas supplies to China.
After losing the European market, it holds enormous significance, as it would allow the redirection of supplies from Western Siberian deposits to Asian markets, according to "Bloomberg".
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 expediting the decision to start construction. Nevertheless, it is not expected that a final agreement will be signed during Xi's current visit.
The first Power of Siberia pipeline has been operational since 2019, reaching a full capacity of approximately 38 billion cubic metres per year by the end of 2023.
The second phase of the project, if realised, 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.
