Russia is in negotiations with Beijing to potentially resume power supply to China, the Russian Energy Ministry told Reuters on Friday, after a Russian media report said that China halted electricity imports from Russia due to high prices.
On Friday, Russian business daily Kommersant reported that China on January 1 stopped buying any electricity from Russia.
The Chinese refusal to buy Russian electricity was the result of high Russian export prices, which in 2026 topped the domestic power prices in China for the first time, Kommersant reported, citing sources familiar with the matter.
Russia’s electricity exports to China are unlikely to resume in 2026, as the higher Russian export price than Chinese domestic power prices since January 1 makes purchases uneconomical for Beijing, according to Kommersant’s sources.
The electricity supply contract between Russia and China is valid until 2037.
The Russian Energy Ministry could resume exports if China requests so, Kommersant noted.
“Russia could resume electricity exports to China if it receives a corresponding request from Beijing and if mutually ?beneficial cooperation terms are reached,” the ministry told Reuters, commenting on the price dispute.
Russia’s priority is to meet growing electricity demand in Russia’s Far East regions. Yet, Russia could resume supply to China if the parties reach a deal on pricing, the ministry added.
Neither side, however, seeks to terminate the contract, said InterRAO, the Russian supplier exporting electricity to China.
“At present, the parties are actively exploring opportunities for electricity trade,” InterRAO said.
China and Russia, close as they are, have had several energy squabbles over prices that China deems unfavorable.
One of the most prominent examples is the planned Power of Siberia 2 huge gas pipeline from Russia to China via Mongolia. A final agreement on the Power of Siberia 2 has been elusive due to some sticking points, including the price at which Russia’s Gazprom will deliver the gas.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
