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Russia, China sign new Siberia gas pipeline deal

  • By Al Mayadeen English
  • Source: Financial Times
  • 2 Sep 2025 13:11
  • 2 Shares
3 Min Read

Russia and China sign a deal to build the Power of Siberia 2 pipeline via Mongolia, boosting energy ties and offering an alternative to the US-led global order.

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  • Russian President Vladimir Putin, speaks with Chinese President Xi Jinping during a walk at the Zhongnanhai leadership compound in Beijing, China, Tuesday, Sept. 2, 2025 (AP)
    Russian President Vladimir Putin speaks with Chinese President Xi Jinping during a walk at the Zhongnanhai leadership compound in Beijing, China, Tuesday, September 2, 2025 (AP)

China and Russia have signed an agreement to build the Power of Siberia 2 gas pipeline, a move that deepens their commercial ties during a week in which they proposed an alternative to the US-led global order.

Alexei Miller, Gazprom’s head, announced the agreement while describing it as a “legally binding memorandum of construction” following talks in Beijing on Tuesday involving Presidents Vladimir Putin and Xi Jinping. The trilateral talks also included Khurelsukh Ukhnaa, Mongolia’s leader, with the country set to serve as a transit point for the pipeline, according to state newswire Interfax.

Miller added that once completed, the pipeline will enable the transport of 50bn cubic metres of gas annually from Russia through Mongolia, with supplies under the new agreement set to run for 30 years.

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Moscow and Beijing also reached an agreement to increase Russia’s gas exports to China through two existing routes, raising volumes from 48bn to 56bn cubic metres annually. These supplies amount to roughly half of the 230 bcm that Russia exported to Europe before the full-scale war in Ukraine in 2022.

Russia offsets its losses through Chinese partnership

The deals, reached after lengthy negotiations between the two countries, will significantly boost China’s energy imports from its neighbour while helping offset Russia’s loss of European markets following its invasion of Ukraine.

The PS2 project has been discussed for years, with talks stalling over pricing as the final terms remain uncertain, and the document’s format as a memorandum indicates negotiations are still in progress, with Miller telling reporters on Tuesday that details on commercial matters would be provided separately.

The meeting with Putin is part of a week of extensive diplomacy for China’s President Xi, who is hosting numerous world leaders at the Shanghai Cooperation Organization security conference in Tianjin as he seeks to position Beijing as a dependable alternative to the US-led global order.

China did not issue an immediate comment on the Power of Siberia 2 deal, and following the meeting with the Russian and Mongolian presidents, state media reported Xi’s statement that “‘Hard connectivity’ should be a key direction, by actively promoting cross-border infrastructure and energy projects linking the three countries.”

  • Mongolia
  • Russia
  • Russian gas supplies
  • Shanghai Cooperation Organization
  • China
  • Xi Jinping
  • Vladimir Putin

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