Home » Russia-China Gas Pipeline Negotiations Stalled Over Pricing and Supply Demands

Russia-China Gas Pipeline Negotiations Stalled Over Pricing and Supply Demands

Russian Deputy Prime Minister Alexander Novak recently remarked that both Russia and China anticipate signing a contract "in the near future" concerning the Power of Siberia-2 gas pipeline.

by IP Staff
Russia-China Gas Pipeline Negotiations Stalled Over Pricing

Russia-China Gas Pipeline: Russia’s efforts to finalize a significant gas pipeline deal with China have hit a snag due to what Moscow perceives as unreasonable demands from Beijing regarding pricing and supply levels, according to sources familiar with the matter cited by the Financial Times on Sunday.

Reportedly, China has insisted on paying prices close to Russia’s heavily subsidized domestic rates and has indicated willingness to purchase only a small portion of the pipeline’s intended annual capacity of 50 billion cubic meters of gas.

For years, discussions have been ongoing regarding the construction of the Power of Siberia-2 pipeline, which aims to transport 50 billion cubic meters of natural gas annually from Russia’s Yamal region in the north to China through Mongolia.

Russian Deputy Prime Minister Alexander Novak recently remarked that both Russia and China anticipate signing a contract “in the near future” concerning the Power of Siberia-2 gas pipeline.

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