ALWAGHT- Moscow and Beijing ink a deal to build the Power of Siberia 2 pipeline via Mongolia, enhancing bilateral energy ties and providing a counterbalance to the US-dominated global order.
China and Russia have signed an agreement to build the Power of Siberia 2 gas pipeline, with Mongolia serving as a transit country. The deal, announced by Gazprom head Alexei Miller, is framed as a legally binding memorandum and was discussed during trilateral talks involving Presidents Vladimir Putin, Xi Jinping, and Mongolian leader Khurelsukh Ukhnaa. The pipeline is expected to transport 50 billion cubic meters of gas annually from Russia to China for 30 years.
In addition to the new pipeline, Moscow and Beijing agreed to boost Russian gas exports through existing routes from 48 billion to 56 billion cubic meters annually. These deals aim to strengthen China’s energy imports while helping Russia offset losses in European markets following the invasion of Ukraine. While the memorandum signals progress, some commercial details and pricing terms remain under negotiation.
The agreement comes amid a week of diplomatic activity for President Xi at the Shanghai Cooperation Organization summit in Tianjin, where China is seeking to present itself as a reliable alternative to the US-led global order. Xi emphasized the importance of “hard connectivity” by promoting cross-border infrastructure and energy projects linking China, Russia, and Mongolia, though China has not yet issued an official comment on the pipeline deal.
