Russia, China move closer to new gas pipeline deal
BEIJING: Russia said on Tuesday (Sep 2) it had signed a legally binding agreement with China to build a new cross-border gas pipeline, the latest effort by the allies to deepen economic and energy ties.
The memorandum of understanding for the Power of Siberia 2 pipeline was signed during Russian President Vladimir Putin’s state visit to China, the Kremlin said.
Although hailed as a breakthrough in long-running negotiations, the deal is not yet definitive, with key details such as pricing still to be determined.
POWER OF SIBERIA 2
The proposed pipeline would transit Mongolia and be capable of supplying 50 billion cubic metres of gas annually, according to Russian state media.
“Today, a very important step has been taken to further strengthen and develop our strategic partnership, to increase reliable supplies of clean energy – natural gas – to China,” Gazprom CEO Alexei Miller said.
Gazprom and the China National Petroleum Corporation also agreed to raise shipments by 15 per cent through the existing Power of Siberia pipeline, Russian news agency Interfax reported.
LIFELINE FOR RUSSIA
China and India have become the biggest buyers of Russian oil and gas since Moscow’s war in Ukraine severed energy ties with Europe. Those flows have helped offset the cost of nearly four years of heavy military spending.
The memorandum for Power of Siberia 2 was among more than two dozen agreements signed between Moscow and Beijing during Putin’s four-day trip, the Kremlin said.
US TRADE PRESSURE
The deal comes as US President Donald Trump threatens new tariffs on countries that continue to buy Russian oil.
Washington has already imposed additional duties on Indian goods over New Delhi’s purchases, but has so far refrained from penalising Beijing.
