Russia, China Sign Binding Power of Siberia 2 Pipeline Deal

Russia's Gazprom and China's CNPC have signed a binding agreement to construct the Power of Siberia-2 pipeline, which will transport up to 50 billion cubic meters of gas annually from Russia's Yamal fields to China via Mongolia over the next 30 years. This deal, announced by Gazprom CEO Alexei Miller, marks a significant expansion of energy ties between Russia and China, with supplies through the existing Power of Siberia pipeline also set to increase from 38 to 44 billion cubic meters per year. The new pipeline is expected to start operations in 2027 and will offer gas prices lower than those currently charged to European customers, reflecting Russia's strategic pivot towards Asia amid reduced access to European markets following the Ukraine conflict. The agreement was finalized after trilateral talks involving Russia, China, and Mongolia and follows multiple cooperation deals signed by Russian President Vladimir Putin and Chinese leader Xi Jinping. Beijing's renewed interest in the pipeline comes amid global energy instability triggered by the conflict in the Middle East, and China maintains its energy purchases from Russia despite U.S. threats of secondary tariffs. This development underscores China's role as a crucial economic partner for Russia, particularly as Moscow seeks to diversify its energy export routes.