Russia and China agree major new gas pipeline at Beijing talks

RUSSIA has signed an agreement to supply China with 50bn m³ of natural gas annually via a new pipeline, announced today during talks between the two nations’ leaders. 

The new pipeline, Power of Siberia 2, will deliver natural gas from eastern Siberia to China for 30 years, routed through Mongolia – whose leader joined Russian president Vladimir Putin and Chinese counterpart Xi Jinping at the summit in Beijing. Xi told Chinese state media he is keen to promote “cross-border infrastructure and energy projects linking the three countries”.

Russian natural gas exports are overseen by the state-owned monopoly Gazprom. In addition to signing a “legally binding memorandum of construction”, CEO Alexei Miller said that Gazprom has also made “commercial arrangements” with the China National Petroleum Corporation to increase gas exports along the existing Power of Siberia pipeline from 38bn m³ to 44bn m³, and along the Far Eastern Route from 10bn m³ to 12bn m³.

While today’s announcement signals a clear intent by China and Russia to deepen energy ties, the pricing details have not been finalised – a stumbling block in previous pipeline negotiations. When asked by reporters about the price at which Gazprom will sell gas to China, Miller said they would “report on commercial issues separately”. However, Miller stressed that the price of Russian gas would be lower in China than it has been in Europe.

Alexander Gabuev, director of the Berlin-based Carnegie Russia Eurasia Center, told the Financial Times that “a legally binding memorandum without a price or timeline is not a final agreement”. 

Russia has been the largest supplier of natural gas to China since the Power of Siberia pipeline came online in 2019. According to Russian state news agency Interfax, Russia exported 31.12bn m³ of gas along the pipeline in 2024 which it says was greater than its contractual obligation. Interfax also reported that Gazprom has increased exports to China by 28% in the first eight months of 2025. In an interview with the Chinese state news agency Xinhua, Putin said: “Russia firmly retains its position as a leading exporter of oil and gas to China…Economic relations between Russia and China have reached an unprecedented level.”

The Power of Siberia 2 agreement was announced during a week of summits hosted by Xi Jinping, aimed at positioning China as a global power on par with the US.

From West to East

Russia and China’s deepening energy ties come as Europe continues to scale back imports of Russian gas – a shift that began after the invasion of Ukraine in February 2022. Legislation currently progressing through the European Parliament aims to end all Russian gas imports by 2027.  

Moldova became the latest European country to distance itself from Russia yesterday, as state-owned Energocom replaced Gazprom-controlled Moldovagaz as the official gas provider. Though not an EU member, Moldova is led by a pro-EU government.

Despite growing efforts to phase out Russian gas, some European voices remain supportive. Following a meeting with Putin in Beijing today, Robert Fico, prime minister of EU member state Slovakia, said the country would oppose EU plans to end Russian gas imports. He warned the move “would cause us great harm”.

Fico is scheduled to meet Ukrainian president Volodymyr Zelenskyy on Friday. According to Bloomberg, his priority will be to confront Zelenskyy over Ukrainian attacks on Russian infrastructure, including the Druzhba pipeline, which supplies crude oil to Slovakia and Hungary.