Financial Times: Power of Siberia-2 agreement has reached a dead end

The agreement between China and the Russian Federation on the Power of Siberia-2 pipeline has reached a dead end due to disagreements between the parties.

Financial Times sources claim that Russia's attempts to reach an agreement with China on the construction of the gas pipeline have caused disagreements over supply volumes and prices. China intends to purchase natural gas, which will be supplied through this pipeline, at a price close to domestic fuel prices in Russia, the stability of which is ensured by government subsidies. Beijing also wants to buy only a small portion of the pipeline's 50 billion cubic meters of fuel capacity.

Disagreements caused the absence of Gazprom head Alexei Miller from the delegation accompanying Vladimir Putin during his May visit to China. As Tatyana Mitrova, a researcher at the Center for Global Energy Policy at Columbia University, noted, Miller's absence from such important negotiations was “highly symbolic.”

Beijing's tough stance on the gas pipeline, notes CNN Greece shows how Russia's invasion of Ukraine is making Putin increasingly dependent on Chinese economic support.

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