During his visit to Beijing, President Putin is set to discuss the Power of Siberia 2 pipeline with Xi Jinping, a project that aims to transport 50 billion cubic meters of gas annually from Russia to China. Despite a memorandum signed in September 2025 to advance construction, key issues such as pricing, financing, and delivery timelines remain unresolved.
China is pushing for pricing terms that align with its domestic rates of approximately $120-130 per 1,000 cubic meters, while Russia is advocating for higher terms similar to those of the existing Power of Siberia 1 pipeline. The backdrop of the ongoing U.S.-Iran conflict has disrupted significant portions of China's energy imports, creating a pressing need for alternative supply routes.
Although the proposed pipeline could enhance energy security for China, analysts caution that it may also deepen Beijing's reliance on Russian energy, potentially complicating the geopolitical landscape. The situation underscores the intricate balance of energy dependence and security that both nations must navigate