The Kremlin said that Russia and China have made progress in discussions, but have not yet reached an agreement on a multibillion-dollar natural gas pipeline project.

BEIJING, May 20 — Russia and China have yet to finalise an agreement on the proposed multibillion-dollar “Power of Siberia 2” gas pipeline following talks between President Vladimir Putin and Chinese President Xi Jinping in Beijing, according to the Kremlin.

Russia has long sought to advance the project as it deepens energy ties with China after losing much of its European gas market following its 2022 invasion of Ukraine. However, Beijing has remained cautious, slowing progress on the deal.

Kremlin spokesman Dmitry Peskov said both sides have reached a “basic understanding” on key aspects, including the pipeline’s route and construction plans, but stressed that no clear timeline has been set and several details remain unresolved.

The project was notably absent from the list of agreements released by the Kremlin after the talks.

If completed, the pipeline would transport around 50 billion cubic metres of gas annually from Russia’s Yamal Peninsula in northern Siberia through Mongolia into China, using fields that previously supplied Europe.

China has shown limited enthusiasm for the project, despite Russia’s hopes that shifting global energy dynamics, including instability in the Middle East, might accelerate negotiations. — AFP