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China energy security
EconomyChina Economy

China, Russia gas-pipeline statements raise questions on Power of Siberia 2 progress

  • Russian President Vladimir Putin says agreement with China and Mongolia to build Power of Siberia 2 natural gas pipeline is ‘practically’ finalised, as Russia looks to divert gas from Europe to Asia
  • But analyst says such deals between Russia and China ‘complicate the ongoing China-US confrontations’ and raise geopolitical risks among major economies

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02:25
Xi Jinping in Moscow to discuss Chinese peace plan for Ukraine with Russia’s Vladimir Putin
Ji SiqiandKandy Wong

As China moves to intensify economic cooperation with its northern neighbour, Beijing says it will work with Moscow to advance a new natural gas pipeline on which Russia has pinned high hopes as it reroutes supplies from Europe to Asia.

A joint statement released on Wednesday, during President Xi Jinping’s trip to Moscow, said “the two sides will work together to promote studies and consultations on the new China-Mongolia-Russia natural gas pipeline project”.
However, analysts say the vague statement may signal a further delay in coming to a final agreement on the gas pipeline, dubbed the “Power of Siberia 2”, as Beijing avoids making a more specific commitment.
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It was also in contrast with a more assertive remark coming from Russian President Vladimir Putin earlier on Tuesday. When asked whether the project was a done deal, he said “practically all the parameters of that agreement have been finalised”, according to the Financial Times.

The pipeline, which plans to deliver 50 billion cubic metres of natural gas per year from Russia’s Yamal Peninsula in west Siberia to China via Mongolia, has been on the books of the three countries for decades. But the Ukraine war has resulted in a greater sense of urgency for Russia to push for a deal, as the country is losing its once-biggest energy buyer – Europe – for the invasion.

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