Putin and Xi Jinping fail to reach agreement on gas pipeline

Russian President Vladimir Putin's visit to China, his fifth since the start of military operations in Ukraine and his twenty-third overall during his political career, has concluded. This was reported by Zamin.uz.

While this high-level meeting shed light on numerous geopolitical and economic issues, Moscow failed to reach the long-awaited final agreement on launching two gas pipelines in the Power of Siberia, which it considers vital. This major project, aimed at increasing the volume of Russian gas supplies to the Chinese market to up to 100 billion cubic meters per year, has been under discussion between the two countries for over a decade.

Kremlin spokesperson Dmitry Peskov acknowledged that, following the closed-door talks between Putin and Chinese leader Xi Jinping, certain issues regarding the project remain unresolved, adding that at the same time, some very delicate aspects need to be fully addressed.

Although a general consensus has been reached on the main technical parameters of the planned gas pipeline and its route, there is still no definitive and clear timeline for its practical implementation. The Russian leader arrived in Beijing with a large official delegation.

Among them were five deputy heads of government, eight ministers, and the heads of major state corporations considered the backbone of the Russian economy. During the talks, the Russian guest spoke of the limitless prospects of cooperation between the two countries and pledged to Beijing uninterrupted exports of oil, coal, and natural gas.

At the conclusion of the meeting, officials from both countries signed a total of forty important documents covering various sectors. However, upon closer examination of the announced list, it became clear that none of them pertain to the construction of a new gas pipeline or a new strategic partnership in the oil and gas sector.

This indicates that the Chinese side still holds a firm position regarding gas prices or the terms of the project. Currently, China purchases thirty-eight billion cubic meters of natural gas from Russia annually.

This figure represents a modest share of Russian gas exports, which have declined since losing the European market. Overall, Russia's current global gas exports have fallen to their lowest level since the 1990s.

For this reason, gaining access to new markets has acquired strategic importance for the Russian economy.