China and Russia Included the Issue of the Stalled Gas Pipeline in the Agenda of Negotiations in Moscow – Bloomberg

Negotiations between Chinese President Xi Jinping and Russian dictator Vladimir Putin this week will include talks on a long-delayed pipeline project connecting the two countries, resuming discussions that have been stalled for years over cost, route and timing, Bloomberg reports, UNN writes.

DetailsMoscow, as noted, has long sought to reach an agreement on the Power of Siberia 2 project to strengthen ties, but also to increase gas flows to the world’s largest energy importer. Russia, as noted, is becoming increasingly dependent on sales to China, amid efforts to replace the European market, which has shrunk sharply since Russia’s invasion of Ukraine in 2022 – and may be completely closed by 2027. For Beijing, with other supply options and import diversification policies, the deal was much less urgent, the publication writes.

However, economic tensions on both sides may bring the two sides one step closer to a compromise – Russia is under severe Western sanctions, and China’s own industrial and trade difficulties make cheaper gas attractive, the publication points out.

During the visit, Beijing may be ready to break the deadlock, allowing negotiations  on a higher selling price than previously considered, according to people familiar with government discussions.

Now it is trying to set a rate between the domestic gas price in Russia and what it pays for gas supplied through the first Power of Siberia pipeline, which began transporting fuel in 2019, sources said.

There are still points of disagreement. China will insist on a direct connection, sources said, preferring to avoid the route through Mongolia.

Power of Siberia 2 will allow Russia to supply an additional 50 billion cubic meters per year and allow China to replace more expensive imports of liquefied natural gas.

Nevertheless, negotiations on the project have been going on for many years, with Beijing refraining even from a preliminary agreement, while Moscow has repeatedly announced an imminent deal, the publication notes.

One unknown factor in the negotiations, as noted, will be the US efforts to explore closer contacts with Russia in the gas sector, including possible cooperation with the energy giant PJSC Gazprom.

Kremlin foreign policy aide Yuriy Ushakov said on Tuesday that economic and energy issues, including the gas pipeline, would be discussed, but did not provide details.