President Vladimir Putin announced that Russia is close to a 'serious' oil and gas deal with China, marking a potential pivot in global energy trade.
The proposed Power of Siberia 2 pipeline would span about 2,600 kilometers from Russia’s Yamal Peninsula through Mongolia to northern China. With a capacity of 50 billion cubic meters of gas per year over 30 years, initial deliveries are targeted for 2030.
This deal comes as Western sanctions push Russia to find new energy buyers. Both countries are increasingly settling energy trades in yuan and rubles, avoiding the US dollar. For Gazprom, Russia's state energy giant, the revenue implications are substantial, though pricing remains a key sticking point with China holding leverage.