Putin Fails to Win Xi’s Power of Siberia 2 Approval as China Seeks 45% Gas Discount
Updated
Updated · OilPrice.com · Jun 2
Putin Fails to Win Xi’s Power of Siberia 2 Approval as China Seeks 45% Gas Discount
3 articles · Updated · OilPrice.com · Jun 2
At the May 20 summit, Vladimir Putin left without Xi Jinping’s sign-off on the Power of Siberia 2 gas pipeline, a project Russia needs to replace revenue lost as Europe tightens energy sanctions.
China has stalled construction despite a September 2025 memorandum, pressing for Russian domestic subsidized gas prices that would leave Gazprom losing money and unable to finance the pipeline.
That pricing pressure reflects a wider imbalance: China’s economy is nearly 8 times Russia’s size, Russia now sources more than 90% of its sanctioned technology from China, and Beijing still buys Russian energy at steep discounts.
Official Chinese customs data show discounted Russian crude saved China $2.2 billion in 2025 alone, while EU estimates put gas sold through the existing Power of Siberia line at up to 45% below prices charged to Europe.
The failed sign-off underscores how Beijing is keeping ties with Moscow on increasingly one-sided terms, turning Russia’s wartime isolation into leverage rather than treating it as an equal strategic partner.
How does the fractured Sino-Russian alliance redraw the map of global power?
With its war machine fueled by Chinese tech, has Moscow traded sovereignty for survival?
Stalled at the Summit: The Power of Siberia 2 Pipeline, China’s Leverage, and Russia’s Energy Dilemma in 2026
Overview
At the May 2026 summit, Russian President Vladimir Putin and Chinese President Xi Jinping met to discuss the Power of Siberia 2 pipeline, a major project aimed at deepening economic cooperation and reducing reliance on the Western-led international order. Despite high expectations, no final agreement was reached, highlighting a continued impasse in negotiations. Both leaders emphasized the strong momentum and resilience of their relationship, but the stalled deal reflects complex strategic concerns and an increasingly asymmetric partnership. This situation underscores the shifting power dynamics between Russia and China, with significant implications for their future cooperation and global energy markets.