Russian President Vladimir Putin‘s trip to China apparently failed last week to secure a project key to the hopes of Moscow’s struggling energy sector.
Putin’s state visit produced a joint statement heralding a “new era” for Beijing and Moscow’s “no limits partnership,” while the hug shared with Chinese counterpart Xi made headlines. But the long-ruling Russian leader walked away without a contract for a pipeline between his country and its largest export market.
Russia has offset some of the business it lost over its February 2022 invasion of Ukraine by rerouting natural gas and oil to China. This relationship continues to deepen with the first Power of Siberia pipeline expected to reach full capacity this year and pipe 38 billion cubic meters (bcm) into China annually.
However, the outsized importance of the Chinese market gives Beijing more control over the terms. Gas is flowing into China at a rate of $257 per 1,000 cubic meters, compared to the $320 for its remaining European markets, and this discount is set to increase to 28 percent next year.
Xi Shoots Down Putin’s Pipeline Plan
American Buddhist Net 