Russia, China, and Mongolia Forge Major Gas Pipeline Agreement Amid Global Tensions

In a significant energy partnership, Russia, China, and Mongolia have formalized plans for the construction of the Power of Siberia 2 gas pipeline. This ambitious project, expected to transport 50 billion cubic meters of discounted Russian natural gas annually, showcases a strengthened collaboration between the three nations amid geopolitical tensions, particularly concerning relations with the United States. The agreement, described as the largest global infrastructure endeavor in the gas sector in terms of size and investment, was confirmed by Alexey Miller, the president of Gazprom, during a meeting attended by the leaders of Russia, China, and Mongolia: Vladimir Putin, Xi Jinping, and Ukhnaa Khurelsukh. The memorandum signed indicates that the gas supplies will be secured for a duration of 30 years. Under the terms of this deal, China will see an increase in gas deliveries, with Gazprom already having established an agreement with the China National Petroleum Corporation (CNPC) to boost annual supplies from 38 billion cubic meters to 44 billion through the existing Power of Siberia pipeline. According to reports from the Russian news agency TASS, the cost of gas for China will be lower than that currently levied against European customers, whose imports have been significantly impacted by sanctions related to Russia's actions in Ukraine. This major announcement follows the recent meetings of the Shanghai Cooperation Organization (SCO), a regional group focusing on economic cooperation and security, involving China, Russia, India, and several Central Asian states. The newly sealed agreement aligns with collaborative discussions held in Beijing, where Putin joined Xi for festivities marking the 50th anniversary of the end of World War II. The backdrop of this meeting hints at an increased alignment between China and Russia as both nations confront growing tensions with the US. Putin and Xi have emphasized their shared history, recalling ties strengthened during World War II and affirming commitments to mutual support in the face of contemporary challenges. This evolving relationship serves as an example of how great powers might engage constructively despite a rapidly changing international landscape. During the discussions, Xi reaffirmed the resilience of Sino-Russian relations, which he described as characterized by "enduring good neighborliness, comprehensive strategic coordination, and mutually beneficial cooperation." Meanwhile, Putin elaborated on Russia’s intentions to bolster high-level exchanges and deepen practical cooperation in diverse fields, underscoring a vision for sustained growth in bilateral ties moving forward. As this ambitious project takes shape, it remains to be seen how it will impact regional dynamics in Asia and Europe, especially against the backdrop of broader geopolitical tensions. Related Sources: • Source 1 • Source 2