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China Yet to Confirm Putin’s Announced Power of Siberia-2 Agreement
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Gazprom and Russian leader Putin’s claims of an agreement with China on the “Power of Siberia-2” gas pipeline remain unconfirmed by Beijing, The Moscow Times reported on September 4.
Gazprom chief Alexey Miller said on September 2 that a legally binding memorandum had been signed during Russia’s leader Vladimir Putin’s visit to China, boosting potential gas supplies to 106 billion cubic meters per year.
Putin repeated the claim, saying the pipeline—including a route through Mongolia—would add 50 billion cubic meters and bring total volumes above 100 billion.
However, three days into Putin’s trip, there has been no confirmation from China. Neither President Xi Jinping nor China’s China National Petroleum Corporation (CNPC)—Gazprom’s gas buyer — have mentioned the project.
Chinese state media also remained silent. A joint statement with Mongolia noted only that the three countries “should actively promote cross-border infrastructure and energy projects,” with no mentions of “Siberia Power 2” pipeline, according to The Moscow Times.
Experts say Russia’s announcements are premature. Victor Gao of the China Energy Security Institute described the statements as “more a signal of intent than a finalized deal.”
Alexander Gabuev of the Carnegie Russia Eurasia Center added that a legally binding memorandum without prices or timelines is not a final agreement.
The real deal so far is increased gas flows via existing pipelines—the original Power of Siberia (+6 billion cubic metres of natural gas) and the Far East route (+2 billion). Regarding “Power of Siberia-2,” China has expressed interest and accepted the route through Mongolia, but price and terms are still under discussion, Gabuev said.
Price remains a sticking point. The 2,600 km pipeline from Yamal to northern China would need to compete with Europe, where gas currently costs $390 per 1,000 cubic meters.
Previously, China demanded prices similar to Russian domestic rates ($120–130 per 1,000 cubic meters). Currently, Gazprom supplies China at $247 — 36% below European prices.
Depending on financial terms, the project could be unprofitable for Russia. Joseph Webster of the Atlantic Council notes China holds leverage, as Moscow has largely cut itself off from European markets, The Moscow Times writes.
He also said that a deal would nonetheless be a major diplomatic victory for Putin.
“It would demonstrating to an external audience—especially in Europe, but also within the country—that, perhaps even more importantly, that he has international support and is backed by the second most powerful country in the world,” Webster claimed.
Previously, it was reported that Russia’s Gazprom has signed a memorandum with China on the construction of the “Power of Siberia-2” gas pipeline, a project planned to run through Mongolia, but Beijing remains cautious.
