Putin Fails to Secure Power of Siberia 2 Deal as China Demands Below-Market Gas

3 articles · Updated · Meduza · Jul 15

Putin left Beijing in May without the Power of Siberia 2 pipeline agreement he wanted, even after signing 42 other agreements and sending Gazprom chief Alexei Miller ahead for talks.
Chinese officials said they would approve the project only if Russia sold gas at domestic Russian prices—below market rate—and told Moscow not to raise the pipeline again until terms changed.
The setback reflects a wider shift since the 2022 invasion: China now accounts for nearly 40% of Russia’s foreign trade and about a third of its export revenues, while Russia makes up less than 4% of China’s trade.
Beijing is still backing Moscow by buying discounted oil, supplying key components and helping it navigate sanctions, but it is also extracting concessions, including wider yuan use and limits on Russia’s North Korea diplomacy.
The relationship remains bound mainly by shared opposition to the U.S.-led order, with China using its stronger position to wait for even better terms rather than deepen dependence on Russia quickly.

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Meduza12h ago

Putin Fails to Secure Power of Siberia 2 Gas Deal in Beijing

Meduza12h ago

WSJ: The leader Xi Jinping once called his 'role model' is now Beijing's supplicant, and China is making Putin wait for the gas deal Moscow badly needs — Meduza

UNITED24 Media18h ago

China Uses Economic Leverage to Stall Russia's Major Gas Pipeline Deal — UNITED24 Media

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How does Beijing balance supporting Putin's war machine against risking its own vital economic ties with the West?

Is Russia trading its national sovereignty for economic survival in its lopsided partnership with China?

Power of Siberia 2 Stalemate: How China’s Leverage and Russia’s Desperation Are Reshaping Eurasian Energy Markets After the 2026 Beijing Summit

Overview

At the May 2026 Beijing Summit, Russian President Vladimir Putin and Chinese leader Xi Jinping presented a united front with positive diplomatic language, highlighting unprecedented relations and stability. However, despite this outward warmth, the summit ended without a key energy agreement on the Power of Siberia 2 gas pipeline. This failure reflected deeper issues: Russia’s urgent need for new export markets after losing Europe made it vulnerable, while China, with more options and less urgency, pushed for better terms. The summit’s outcome revealed a growing imbalance in the Russia-China relationship, with China holding the stronger negotiating position.

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