Russia and China Deepen Strategic Energy Partnership with New Gas Pipeline Deals

Russian energy giant Gazprom has signed a “legally binding agreement” to construct the Power of Siberia 2 natural gas pipeline to China and the Soyuz Vostok transit pipeline through Mongolia. The announcement was reported by Bloomberg, citing Gazprom’s head Alexey Miller in an Interfax report.

Russia currently supplies gas to China via the original Power of Siberia pipeline, which has a planned annual capacity of 38 billion cubic meters. Starting in 2027, the so-called Far Eastern route is expected to increase annual Russian gas flows to China by an additional 10 billion cubic meters.

The deal was announced as Chinese President Xi Jinping and his Russian counterpart, Vladimir Putin, held a brief meeting in Beijing, highlighting the close ties the two leaders have cultivated since Moscow’s invasion of Ukraine. President Xi welcomed Putin in the Great Hall of the People, referring to him as an “old friend.” Chinese state media quoted Xi as stating that “China-Russia relations have stood the test of changing international circumstances,” and cited them as “a good example of friendship between neighbors, of comprehensive strategic coordination, and of mutually beneficial cooperation.”

In a clear challenge to the U.S.-led world order, President Xi reiterated his global governance initiative during the meeting, which was first presented at the SCO summit in Tianjin. He stated the initiative aims to “collaborate with all countries that share the same ideals to firmly support the purposes and principles of the UN Charter and promote the building of a more just and equitable global governance system.” According to China’s CCTV, President Putin responded that the initiative is “very timely and necessary and will play an important role in addressing the global governance deficit.”

Putin thanked his “dear friend” Xi Jinping for the “warm welcome” in China, noting that bilateral ties have reached “unprecedented levels.” He added, “Our close communications reflect the strategic nature of the Russo-Chinese ties… We have always been together in the past and we will be in the future.”

The leaders’ talks were followed by a trilateral meeting that included Mongolian President Ukhnaa Khurelsukh. This three-way discussion was closely watched for potential breakthroughs on the Power of Siberia 2 project, which aims to more than double gas transport capacity from Russia to China and would include a section running through Mongolian territory.

In a separate development, North Korean leader Kim Jong Un arrived in China on a rare foreign trip, his first in nearly seven years. He was accompanied by “high-ranking officials from the Workers’ Party and the government,” including Foreign Minister Choe Son-hui, at the invitation of President Xi. The visit is for an event commemorating the 80th anniversary of China’s resistance against Japanese aggression.

The timing of the report by state media Rodong Sinmun, which published photos of the departure immediately after it occurred, was noted as unusual. The heavily armored train was expected to arrive in Beijing later in the day after a roughly 20-hour journey from Pyongyang.

In related news, North Korean state media (KCNA) revealed that Kim Jong Un recently visited a chemical materials academy and met with experts researching carbon-fiber composites. He was briefed on progress in developing new engines generating 1,960 kilonewtons of thrust for use in the Hwasongpho-19 intercontinental ballistic missile (ICBM) series and a new-generation ICBM, the Hwasongpho-20.

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