Russia is in an active stage of talks with China over the Power of Siberia 2 gas pipeline to bring more Russian gas to China, Russia’s Energy Minister Sergei Tsivilev said while Chinese President Xi Jinping is visiting Moscow.
Despite the touted “active” talks, it is unlikely that Russia and China will sign an agreement on the proposed gas pipeline before May 9, Russian news agency TASS quoted Tsivilev as telling reporters.
Xi flew to Moscow on Wednesday, will hold talks with Vladimir Putin on Thursday, and will attend a planned grand parade on Friday to mark the V-day of Russia defeating Nazi Germany in the Second World War 80 years ago, alongside other leaders of countries that have kept friendly ties with Russia after Putin’s invasion of Ukraine.
With the proposed Power of Siberia 2, Russia has been trying for years to get China to commit to a new natural gas pipeline from the massive fields in Western Russia to China via Mongolia. Power of Siberia 2, despite Russian assurances, is nowhere near a concrete commitment from China on the price and volumes at which the Russian gas would be imported.
China has been negotiating from a position of strength after becoming Russia’s key gas customer and key trade partner in all other areas following the invasion of Ukraine, which severed decades-long gas supply relations between Russia and Europe. Russia appears to be struggling to convince China to take on more pipeline gas amid disagreements over the price China would pay.
According to Tsivilev’s comments to reporters, Russia and China are currently discussing the route option via Mongolia, but companies are working on drafting the contract.
“They are in the active stage of negotiations, so I think it is unlikely that they will manage to do this before May 9,” the minister was quoted as saying.
By Tsvetana Paraskova for Oilprice.com
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