Putin Calls China Gas Pipeline a ‘Mutually Beneficial Project’ With Market-Based Pricing

Russian President Vladimir Putin has reaffirmed his commitment to building the Power of Siberia 2 gas pipeline to China, describing the project as mutually beneficial and one of the largest energy initiatives in the world.

Speaking at the Eastern Economic Forum in Vladivostok, Putin said the pipeline’s gas pricing would be determined using the same market-based formula previously applied to Europe, ensuring transparency and competitiveness.

The Power of Siberia 2 route, which will pass through Mongolia, has been on the table for years but gained urgency after Russia lost most of its European gas market following the 2022 Ukraine invasion. Moscow has since prioritized China as its most important alternative buyer.

During Putin’s state visit to Beijing this week, the two countries signed an agreement to advance the pipeline, with deliveries targeted for 2030. However, Russian energy giant Gazprom confirmed that final pricing arrangements are still under negotiation.

Mongolia’s parliament speaker, Zandanshatar Gombojav, said Ulaanbaatar is prepared to move forward with the project and could also purchase some Russian gas for domestic use.

The pipeline underscores Russia’s accelerating “pivot to Asia,” as it seeks to redirect export flows and secure long-term demand amid sustained Western pressure.