Russian President Vladimir Putin is set to travel to Beijing on Tuesday for talks with Chinese leader Xi Jinping, with a focus on the proposed gas pipeline project to China.
According to sources close to the Russian government, Moscow is optimistic that recent upheavals in energy markets, driven by conflicts in the Middle East, may prompt China to adopt a more flexible stance in negotiations over gas pricing for the “Power of Siberia-2” pipeline.
A Russian official indicated that Chinese representatives have expressed interest in accelerating discussions, although substantial progress has yet to be made. Yuri Ushakov, an advisor to the Kremlin on foreign policy, emphasized that the gas pipeline remains a priority in the agenda. “We are serious about discussing this. I believe the leaders will address this topic in detail,” he told reporters on May 18.
However, Bloomberg reports that the advancement of any agreement hinges on Xi’s willingness to engage, and there are currently few indications that Russia will find it easy to reach consensus.
In light of increasing economic pressure, Russia is increasingly reliant on trade with China to mitigate the impacts of Western sanctions imposed due to its ongoing military actions in Ukraine. The situation in Iran may also provide Moscow an opportunity to recalibrate its relationships, as Beijing seeks greater energy security amid disruptions caused by the closure of the Strait of Hormuz.
A source familiar with the operations of Russian energy giant Gazprom stated that the company has made a competitive pricing offer for the “Power of Siberia-2” pipeline, which will run from Siberia to China through Mongolia. However, Chinese partners have not shown a strong inclination to advance the project. The source added that Russia aims to finalize gas pricing by September.
In March, following the onset of conflict in Iran, China expressed its intention to make progress on the construction of the Russian gas pipeline as part of its five-year plan. In late April, Gazprom Chairman Alexey Miller and Dai Houliang, head of the China National Petroleum Corporation, met in Beijing to discuss the development of their strategic partnership.
On May 9, Putin stated that nearly all key issues regarding gas and oil cooperation with China had been agreed upon. “If we can finalize these during the visit, I will be very satisfied,” he remarked.
While transport corridors through Russia have long been a topic in bilateral discussions, sources indicate that there is now heightened interest from Chinese officials in expanding overland transit routes and those via the Northern Sea Route in the Arctic, influenced in part by the conflict in Iran.
Ushakov confirmed that Putin and Xi are scheduled to hold talks on Wednesday, followed by a tea session to continue their discussions.
The Russian delegation will include five deputy prime ministers, eight ministers, and Central Bank Governor Elvira Nabiullina, along with leaders from state corporations and major enterprises.
This meeting follows Xi’s summit with former U.S. President Donald Trump. Bloomberg noted that this will be the second time this year that Xi engages in diplomatic discussions with both Trump and Putin in quick succession; earlier in February, he held separate phone calls with the U.S. President and the Kremlin leader within hours of each other.
President Putin's upcoming visit to Beijing aims to advance discussions on the 'Power of Siberia-2' gas pipeline project amid shifting energy market dynamics. While both sides express interest, significant progress remains uncertain.