Russia, China Sign Major Power of Siberia-2 Gas Deal

Russian President Vladimir Putin and Chinese President Xi Jinping met in Beijing to formalize a landmark agreement on the Power of Siberia-2 pipeline, which will transport 50 billion cubic meters of natural gas annually from western Russia to northern China via Mongolia. This deal, described as the world's largest and most capital-intensive gas project, aims to offset nearly half of Russia's lost gas exports to Europe following the Ukraine war and Western sanctions. Putin emphasized that the agreement is based on market principles with prices set by an objective formula, not politics, and highlighted the unprecedentedly high level of Russia-China relations. Gazprom CEO Aleksey Miller confirmed a 30-year supply contract with gas prices lower than those previously charged to Europe, alongside plans to increase supplies on existing routes. The visit marked Putin's longest stay in a single country since the 2022 invasion of Ukraine, underscoring the deepening strategic partnership between Russia and China amid growing tensions with the West. Additionally, the leaders held trilateral talks with Mongolia's president to enhance political and economic ties, while China continues to increase its imports of Russian energy resources.