Behind the stalled gas pipeline set to dominate Putin-Xi summit
Russian President Vladimir Putin and Chinese leader Xi Jinping met in Beijing to discuss the long-stalled Power of Siberia 2 natural gas pipeline. The project, which would span 2,600 kilometers and carry 50 billion cubic meters of gas annually from Russia’s Yamal fields to China via Mongolia, has faced challenges in terms of pricing, financing terms, and delivery timeline. While Moscow and Beijing signed a memorandum to advance construction in September 2025, key details remain unresolved.
China has been a significant buyer of Russian energy, with imports of Russian oil increasing by 35% year over year in the first quarter. The proposed Power of Siberia 2 pipeline would complement the existing Power of Siberia 1 system, which currently delivers approximately 38 billion cubic meters of gas to China annually. Both countries have agreed to expand the annual capacity of the existing system.
During a joint press conference, Putin emphasized Russia’s readiness to continue supplying China with energy and highlighted the potential for joint renewable energy projects. The leaders signed a joint statement on strengthening their comprehensive partnership and advocating for a multipolar world and new international relations.
The ongoing U.S.-Iran conflict, which has disrupted China’s oil imports and LNG supply due to the closure of the Strait of Hormuz, has created new incentives for Beijing to consider alternative energy sources. However, analysts remain skeptical that this would significantly impact Beijing’s negotiating stance, given its existing energy reserves and alternative supply sources.
Russia’s gas exports to Europe have declined since the 2022 invasion of Ukraine, with Gazprom reporting a 44% drop in shipments last year. The potential risks of the Power of Siberia 2 pipeline include overreliance on a single customer for Moscow and dependence on Russian-controlled energy for Beijing. Despite these challenges, a deal on the pipeline would signify a deeper level of trust and co-dependency between the two countries.
The Sino-Russian relationship, if strengthened through the Power of Siberia 2 project, could have broader implications for global geopolitics. It would make the relationship between the two countries harder to unravel and potentially impact other global players. As discussions continue on the project, key details and parameters are still being finalized to ensure its successful implementation.
