Xi and Putin Revive Talks on Power of Siberia 2 Gas Pipeline Amid Mounting Economic Pressures

Chinese President Xi Jinping and Russian President Vladimir Putin are set to revisit negotiations over the long-stalled Power of Siberia 2 gas pipeline during their high-level talks this week. The project, which aims to significantly expand Russia’s energy exports to China, has faced years of delays due to persistent disagreements over pricing, routing, and project urgency.

The Gaze reports on this with reference to Bloomberg.

With Russia reeling from Western sanctions and China facing domestic economic slowdowns, both sides may now be more open to compromise. According to sources familiar with the matter, Beijing is reportedly willing to consider a higher purchase price for Russian gas, potentially bridging a gap that has blocked progress for years.

The pipeline, if completed, would enable Russia to export an additional 50 billion cubic meters of natural gas annually to China, boosting supply well beyond the 38 billion cubic meters currently delivered via the original Power of Siberia route, which became operational in 2019. For China, this could help reduce reliance on more expensive liquefied natural gas imports.

Nonetheless, significant hurdles remain. Chinese officials continue to resist proposals to route the pipeline through Mongolia, preferring a direct cross-border link similar to the first project. While discussions are expected to be substantive, no formal agreement is likely to be signed during Xi’s visit, insiders say.

Russia, increasingly dependent on Chinese energy demand following its estrangement from European markets after 2022, views the deal as strategically crucial. Moscow has frequently hinted that an agreement is close, but Chinese caution has thus far prevented any public commitment.

One uncertainty surrounding the negotiations is the potential influence of U.S. efforts to monitor or disrupt Russia’s energy partnerships, though no formal American position has been stated. Both the Kremlin and China’s Ministry of Foreign Affairs have declined to comment on the specifics of the upcoming discussions.

As The Gaze reported earlier, Russian President Vladimir Putin and Chinese leader Xi Jinping are set to sign a “series” of bilateral agreements during Xi’s upcoming visit to Moscow, scheduled for May 7–11.