Putin-Xi talks revive stalled Russian gas pipeline as Iran war rattles energy markets

Russian President Vladimir Putin met with Chinese leader Xi Jinping in Beijing on Wednesday, with the long-stalled Power of Siberia 2 natural gas pipeline on the agenda, as the Iran war disrupts energy supplies.

Kremlin foreign policy aide Yuri Ushakov said Tuesday that the project "will be discussed in great detail between the leaders."

The planned 2,600-kilometer pipeline would carry 50 billion cubic meters of gas annually from Russia's Yamal fields to China via Mongolia. Moscow and Beijing signed a legally binding memorandum to advance construction in September 2025, but pricing, financing terms, and a delivery timeline remain unresolved.

China reportedly wanted pricing terms for the new pipeline to match Russia's domestic rate of around $120-130 per 1,000 cubic meters , while Moscow is seeking terms closer to Power of Siberia 1, which analysts estimate would more than double that figure.

China has been a major buyer of Moscow's energy, with its imports of Russian oil jumping 35% year over year in the first quarter, according to official customs data .

The proposed additional pipeline would complement the existing Power of Siberia 1 system , which delivers about 38 billion cubic meters of gas to China annually, and both countries agreed to expand its annual capacity further.

At a joint press conference on Wednesday, the Russian president said his country was ready to continue supplying China with energy and that there is "big potential in joint renewable energy projects," in comments translated by Reuters.

"Russia and China are actively cooperating in the energy sector. Our country is one of the largest exporters of oil, natural gas, including liquefied gas, and coal to China. We are, of course, ready to continue to reliably ensure uninterrupted supplies of all these fuels to the rapidly growing Chinese market," Putin said in comments reported by Russian state news agency TASS.