During Russian President Vladimir Putin’s visit to China, Russia and China have come to terms with building a new gas pipeline, Gazprom reported, underscoring the strengthening of their economic and energy ties.
A “legally binding memorandum” had been signed to develop the pipeline, according to Alexei Miller, CEO of Gazprom, Russia’s largest energy company, on Tuesday.
An additional 50 billion cubic meters (bcm) of gas could be transported by Mongolia’s Power of Siberia 2 each year from Russia’s Arctic Yamal fields to China.
Miller added that from now on, deliveries from eastern Siberia to China will increase to 44 bcm annually from 38 bcm.
The agreement would increase Beijing’s energy options while reducing its dependence on American-imported liquefied natural gas (LNG) imports.
Unprecedented ties, in your opinion.
Following high-profile meetings between President Putin and Chinese President Xi Jinping, the Russian leader praised Beijing’s “unprecedented ties.”
For the Shanghai Cooperation Organization (SCO) summit in Tianjin, China, Xi also hosted dozens of world leaders, including Prime Minister Narendra Modi. The Chinese leader urged regional leaders to reject “Cold War mentality,” making explicit reference to the United States, by promoting the security bloc as an alternative to the Western-led international order.
Despite several rounds of discussions, Beijing and Washington have not yet reached a trade agreement.
US President Donald Trump stated in an interview with “Scott Jennings Radio Show” on Tuesday that he is “not concerned at all” about a growing US-to-Russia border.
Pricing for the new route is undetermined, though. Russia’s efforts to offset the decline of its European gas market, while China seeks discounts, are being met separately, according to Miller, who stated that negotiations on costs would be handled.
According to Michal Meidan, head of China Energy Research at the Oxford Institute for Energy Studies, “Announcements about Power of Siberia 2 are a huge turning point in the geopolitics of energy.” The message is that China no longer cares about what the West thinks or even pretends to be complicit in US sanctions. Additionally, it is not by itself.
boosting economic ties
Russia’s sanctioned Arctic LNG 2 project has already sent liquefied natural gas to China, indicating that it is ready to defy Western pressure.
Moscow and Beijing’s trade increased to $ 240 billion in 2023, underlining their growing partnership since Russia’s invasion of Ukraine in 2022.
No details were provided, but officials from the Kremlin claimed that during Putin’s ongoing visit, 22 agreements, including one involving a strategic cooperation agreement between China National Petroleum Corporation and Gazprom, had been signed.
Source: Aljazeera
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