Putin and Xi seek breakthrough in power of Siberia 2 talks
Russian President Vladimir Putin and Chinese Chairman Xi Jinping are set to meet in Moscow. The Russian leader is eager to revisit discussions about the Power of Siberia 2 pipeline project. Negotiations have been ongoing since 2022, but no agreement has been reached yet.
During Xi Jinping's visit to Moscow, which coincides with the Victory Day celebrations, Russian President Vladimir Putin intends to revive talks on constructing the Power of Siberia 2 pipeline, as reported by "Bloomberg".
The project is crucial for Russia and was proposed by Putin in 2022 to boost Russian gas supplies to China.
With the loss of the European market, the project is incredibly significant, as it would enable the redirection of supplies from Western Siberian deposits to Asian markets, according to "Bloomberg".
China has not yet agreed to the project, insisting that gas prices must be comparable to what Russia offers on its domestic market. However, "Bloomberg" sources suggest that Beijing might be willing to accept the price, potentially speeding up the decision to begin construction. Nonetheless, 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, achieving a full capacity of 1,342 billion cubic feet 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. Nonetheless, Chinese officials favor a more direct route that avoids Mongolia.
