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China Has ‘Enormous Leverage’ in New Gas Pipeline Deal with Russia
The 30-year agreement secures 50 billion cubic meters of Russian gas annually for China, bypassing Western sanctions and reshaping global energy supply routes and alliances.
- On September 2, 2025, Gazprom and China National Petroleum Corporation signed a legally binding memorandum to build Power of Siberia 2, confirmed by President Vladimir Putin in Beijing after his SCO summit visit.
- Since the 2022 invasion of Ukraine, Russia has faced sanctions and EU plans to phase out its gas by 2027, prompting a shift from European countries to alternative markets, rerouting gas east to China.
- Data in the memorandum indicate a 30-year contract duration with Power of Siberia 2's planned 50 billion cubic meters annual capacity, using Russian rubles and Chinese yuan and raising exports on the existing pipeline by 16% to 44 billion cubic meters per year.
- China stands to gain cheaper, stable gas supplies and increased influence, Mongolia will earn billions in transit fees as a key corridor, and European industries face higher costs shifting to LNG imports.
- In geopolitical terms, the agreement signals the rise of a Russia-China-Mongolia energy axis, reshaping global energy flows and underscoring limits of Western sanctions.
13 Articles
13 Articles
Russia-China gas deal will have global ripple effects
Tim’s viewThe agreement between Russia and China this week to build a massive new gas pipeline isn’t just another trade deal: It’s a geopolitical chess move that may leave China the biggest beneficiary of the Ukraine war, Russia with a new customer, and US energy companies with more LNG export terminals than they know what to do with.When Russian President Vladimir Putin and US President Donald Trump met in Alaska last month, it looked like a ch…
Russia and China Seal Deal for Power of Siberia 2 Pipeline
Russia and China Seal Deal for Power of Siberia 2 Pipeline In a significant development, Russia and China have finalized the path and supply parameters for the much-anticipated Power of Siberia 2 gas pipeline, according to a RIA news agency report citing Russian Energy Minister Sergei Tsivilev.The agreement was cemented with a binding memorandum during President Vladimir Putin's visit to China, acknowledging the pipeline's intended route through…
China has ‘enormous leverage’ in new gas pipeline deal with Russia
Russia plans to build a new gas pipeline through Siberia to deliver fuel to China. The Power of Siberia 2 pipeline could help Russia overcome lost customers following its invasion of Ukraine and offer China a more diversified mix of energy options. The planned pipeline will transport 50 billion cubic meters of gas per year from reserves in Russian Siberia, across Mongolia to Northern China. The deal will last 30 years, and transactions will be m…
Russia and China Agree on New Gas Pipeline Project
Russia and China Agree on New Gas Pipeline Project acabral-sanche… Wed, 09/03/2025 - 10:29 SVG In the Media Sep 2, 2025 Fox Business Russia and China Agree on New Gas Pipeline Project Mary Kissel Senior Fellow (Nonresident) Mary Kissel Caption (Screenshot via Fox News) Toggle Table of Contents Contents Contents Share to Twitter Twitter Share to Facebook Facebook Share to LinkedIn LinkedIn Share to E-mail E-mail Print Print Mary K…
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