Russia and China Seal Historic Gas Deal with Power of Siberia 2

Russia and China signed a legally binding memorandum on September 2, 2025, to advance the long-delayed Power of Siberia 2 pipeline, a pivotal project aimed at bolstering energy ties between the two nations. The agreement, finalized in Beijing, underscores China"s growing role as Russia"s primary energy customer amid Moscow"s efforts to shift focus from European markets.

Four agreements were reached between Russia’s Gazprom and the China National Petroleum Corporation, with Gazprom CEO Alexei Miller declaring the pipeline "the largest, most ambitious and most capital-intensive project in the global gas industry." The pipeline is projected to transport up to 106 billion cubic meters of Russian natural gas to China annually, significantly impacting the global energy landscape.

Prior to the escalation of the Ukraine conflict in 2022, Russia exported over 150 billion cubic meters of gas to Europe. The new deal includes an increase in annual shipments through the existing Power of Siberia pipeline from 38 billion cubic meters to 44 billion. The Power of Siberia 2 will traverse Mongolia and is expected to operate for 30 years.

This agreement marks a definitive shift in Russia"s energy strategy, redirecting resources that once fueled European economies toward China. As previously reported, Moscow has sought to offset its losses in European energy markets by offering steep discounts on oil, coal, and gas to China, further solidifying this strategic partnership.