Chinese President Xi Jinping and Russian President Vladimir Putin have reinforced their strategic partnership with a $13.6 billion agreement to build the Power of Siberia 2 gas pipeline.
The deal, signed during talks in Beijing, will transport 50 billion cubic meters of Russian natural gas annually to China through Mongolia for 30 years.
Putin hailed the bilateral relationship as reaching an unprecedented high, while Xi stressed its resilience despite international challenges.
The pipeline is the largest and most capital-intensive project in the global gas industry, according to Gazprom CEO Alexei Miller.
What are the details of the Siberia-2 gas pipeline deal?
The project will deliver a steady supply of Russian gas to China, supplementing existing routes like the original Power of Siberia pipeline, which is also expanding capacity.
The Power of Siberia 2 deal aims to supply up to 50 billion cubic meters annually, with additional increases planned for other routes.
Energy pricing remains a key unresolved issue, with indications that prices will be set lower than those Russia charges European buyers, reflecting the shift in market priorities.
Did you know?
Payments between Russia and China for gas now occur half in rubles and half in yuan, reducing reliance on Western financial systems.
How does the pipeline impact China-Russia energy trade?
The pipeline represents a critical pivot for Russia, compensating for lost European markets impacted by sanctions.
China has been Russia’s largest trading partner for 15 years, with bilateral trade reaching $244.8 billion in 2024.
Payments for gas transactions are now largely conducted in rubles and yuan, alleviating reliance on Western currency systems.
The strengthened energy ties play into a broader strategic realignment amid ongoing global geopolitical tensions.
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What new travel arrangements were agreed upon?
In addition to energy cooperation, China announced a trial visa-free travel program for ordinary Russian passport holders starting September 15, 2025.
This initiative allows Russians to visit China visa-free for up to 30 days for tourism, business, or family visits and is expected to boost tourism and economic exchanges by up to 40%.
What are the geopolitical implications of the summit?
The summit coincided with a massive military parade marking 80 years since the end of World War II, attended also by North Korean leader Kim Jong Un, symbolizing a united front against perceived Western dominance.
Xi and Putin criticized “bullying behavior” by some countries and defended Russia’s actions in Ukraine, underscoring their alliance as a force reshaping global diplomacy and economic ties.
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