economy
As Putin-Xi meet, Iran war energy disruption puts long-stalled Russian gas pipeline back on agenda
Putin is expected to hold talks with Chinese leader Xi Jinping on Wednesday, with the long-stalled Power of Siberia 2 natural gas pipeline topping the agenda.
TL;DR
- Putin and Xi Jinping are discussing the Power of Siberia 2 gas pipeline, which has been long-stalled.
- The Iran war has disrupted energy supplies, increasing the importance of the pipeline.
- The proposed pipeline would carry 50 billion cubic meters of gas annually from Russia to China via Mongolia.
- Key unresolved issues include pricing, financing, and a delivery timeline.
- China reportedly seeks domestic pricing, while Russia aims for terms similar to the Power of Siberia 1 pipeline.
- China's oil imports from Russia increased by 35% in the first quarter.
- The U.S.-Iran war has disrupted China's oil and LNG supplies.
- China has significant onshore crude inventory and increasing domestic gas output.
- Russia's gas exports to Europe have significantly decreased since the Ukraine invasion.
- The Power of Siberia 2 could create dependence for both nations on each other.