Moscow and Beijing agree to advance a major gas link via Mongolia, deepening their energy ties.
Published On 2 Sep 2025
Russia and China have agreed to move forward with a new gas pipeline during Russian President Vladimir Putin’s trip to China, Gazprom said, highlighting the growing economic and energy ties between the two nations.
Alexei Miller, CEO of Gazprom, the largest energy firm in Russia, confirmed on Tuesday that a “legally binding memorandum” had been signed to develop the pipeline.
The long-planned Power of Siberia 2 could carry an additional 50 billion cubic metres (bcm) of gas annually from Russia’s Arctic Yamal fields to China via Mongolia.
Miller added that deliveries through the existing Power of Siberia pipeline from eastern Siberia to China would increase to 44 bcm a year, up from 38 bcm.
The deal would deepen Beijing’s energy options while reducing dependence on liquefied natural gas (LNG) imports from the United States.
‘Unprecedented ties’
The announcement followed high-profile meetings between Chinese President Xi Jinping and President Putin during which the Russian leader hailed the “unprecedented ties” with Beijing.
Xi also hosted dozens of world leaders, including Indian Prime Minister Narendra Modi, for the Shanghai Cooperation Organisation (SCO) summit in the Chinese city of Tianjin. The Chinese leader, who touted the security bloc as an alternative to the Western-led international order, urged regional leaders to oppose “Cold War mentality” in an implicit reference to the United States.
Beijing and Washington have still not agreed to a trade deal despite several rounds of talks.
In an interview with “Scott Jennings Radio Show”, US President Donald Trump said on Tuesday that he is “not concerned at all” about an axis forming against the US that includes China and Russia.
However, pricing for the new route remains unsettled. Miller said negotiations on costs would be handled separately, a sticking point as Russia seeks to offset the loss of its European gas market, while China is seeking discounts.
“Announcements about Power of Siberia 2 are a huge turning point in the geopolitics of energy,” said Michal Meidan, head of China Energy Research at the Oxford Institute for Energy Studies, speaking to Reuters. “The message is: China is no longer even pretending to comply with US sanctions or care about what the West thinks. And it’s not alone.”
Deepening economic ties
China has already received liquefied natural gas shipments from Russia’s sanctioned Arctic LNG 2 project, signalling its readiness to defy Western pressure.
Trade between Moscow and Beijing surged to $240bn in 2023, underscoring their deepening partnership since Russia’s 2022 invasion of Ukraine.
Kremlin officials said 22 agreements were signed during Putin’s ongoing trip, including a strategic cooperation pact between Gazprom and China National Petroleum Corporation, though no details were provided.
“The big deal is finally under way,” said Kirill Babaev of Moscow’s China and Contemporary Asia Institute, speaking to Reuters. “Political negotiations are over, and now commercial tasks will bring results, with the blessing of leaders from Russia, Mongolia, and China.”
