DistantNews
Support us
🇰🇷 South Korea /Energy & Infrastructure

Putin Showcases Alliance in Beijing, Returns Empty-Handed on Gas Pipeline Deal

From Hankyoreh · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Russian President Vladimir Putin met with Chinese President Xi Jinping in Beijing, showcasing a strong alliance but failing to secure a deal on the crucial "Power of Siberia-2" gas pipeline.
  • Russia is eager to expedite the pipeline project due to Western sanctions and increased risks to maritime exports following Ukraine's attacks on Russian energy export ports.
  • China, however, shows no urgency, likely leveraging Russia's dependence to negotiate more favorable terms and lower prices, especially as China's own gas demand growth slows.

President Vladimir Putin's visit to Beijing, ostensibly to solidify the Russia-China alliance, has yielded little in terms of tangible gains for Moscow, particularly concerning the much-anticipated "Power of Siberia-2" gas pipeline deal. While Putin and Xi Jinping exchanged pleasantries, calling each other "dear friend" and "old good friend," and jointly condemned US-Israeli actions in Iran, the core objective of securing a firm commitment for the new pipeline remained elusive. Kremlin spokesperson Dmitry Peskov admitted that while understanding exists on key conditions, several details still need finalization, with no set timeline.

There is understanding on all key conditions regarding 'Power of Siberia-2,' but several details remain to be finalized.

· Dmitry Peskov, Kremlin SpokespersonAcknowledging that the gas pipeline deal with China is not yet finalized despite high-level talks.

Russia's urgency for the "Power of Siberia-2" project is palpable. Crippled by Western sanctions since the Ukraine conflict, Moscow's traditional gas and oil export routes have been severely restricted. Maritime exports face increasing risks, exacerbated by Ukrainian attacks on Black Sea and Baltic Sea energy terminals. With Europe, a primary market, committed to a full ban on Russian gas by January 2025, China represents one of the few remaining stable markets. Putin himself had expressed optimism prior to the visit, suggesting that "almost all key issues" had been resolved.

If we can finalize it during my visit and bring the process to a decisive stage, I will be very pleased.

· Vladimir Putin, President of RussiaExpressing his hope before the meeting that the gas deal would be concluded during his visit to China.

However, China appears to be in no hurry. Beijing understands that Russia, facing dwindling options, has little leverage. Reports indicate Russia's state-owned Gazprom has offered gas to China at prices lower than those supplied to Europe. This asymmetric situation allows China to potentially negotiate even lower prices or more favorable construction terms for the pipeline. Furthermore, China's own economic slowdown has moderated its gas demand growth, and the nation is increasingly shifting towards renewable energy and nuclear power. The inclusion of clauses in such pipeline deals that require the importing country to pay for gas even if imports are halted due to economic downturns is a significant financial burden, one that China is likely keen to minimize in any future agreement.

Russia has no other choice but to rely on China.

· Wang Yiwei, Professor of International Relations at Renmin University of ChinaExplaining China's strong negotiating position due to Russia's limited options.
About this summary

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog