SAEDNEWS: Russia and China signed a binding agreement to build a new gas pipeline via Mongolia, advancing energy cooperation during President Vladimir Putin’s visit to Beijing, Gazprom said Tuesday.
Gazprom CEO Alexei Miller confirmed a “legally binding memorandum” had been signed to develop the long-planned Power of Siberia 2 project.
The pipeline could deliver 50 billion cubic metres (bcm) of gas annually from Russia’s Yamal fields to China.
Miller also said shipments through the existing Power of Siberia pipeline would rise to 44 bcm a year, compared with 38 bcm now.
The deal strengthens Beijing’s energy security while reducing its reliance on US liquefied natural gas imports.
Putin praised the “unprecedented ties” with Beijing after meeting Chinese President Xi Jinping.
Xi, who hosted the Shanghai Cooperation Organisation summit in Tianjin, urged regional leaders to resist “Cold War mentality,” an implicit reference to Washington.
US President Donald Trump told the “Scott Jennings Radio Show” he was “not concerned at all” about closer cooperation between China and Russia.
Pricing for the new pipeline remains unresolved. Miller said negotiations on costs would be handled separately, with Moscow seeking to compensate for lost European markets and Beijing pressing for discounts.
China has already received shipments from Russia’s sanctioned Arctic LNG 2 project, underlining its willingness to defy Western pressure.
Bilateral trade reached $240 billion in 2023, highlighting deepening economic ties since Russia’s 2022 invasion of Ukraine.
Kremlin officials said 22 agreements were signed during Putin’s trip, including a strategic cooperation pact between Gazprom and China National Petroleum Corporation, though no details were released.
“The big deal is finally under way,” said Kirill Babaev of Moscow’s China and Contemporary Asia Institute. “Political negotiations are over, and now commercial tasks will bring results, with the blessing of leaders from Russia, Mongolia, and China.”
