Putin: Moscow’s pipeline deal with Beijing mutually beneficial

Russian President Vladimir Putin has said that the Power of Siberia 2 gas pipeline to China via Mongolia is mutually beneficial for the parties involved. 

Speaking at the plenary session of the 10th anniversary Eastern Economic Forum (EEF-2025), Putin emphasised that raw material prices are determined on a market basis and follow the same formula used for supplies to Europe, though the components of the formula vary across regions, Caliber.Az reports via TASS. 

Putin explained that while the pricing formula itself is identical worldwide, the resulting prices differ depending on the region, with European and Asian markets reflecting different conditions. He reiterated that the project operates on a market-based framework. 

Russia will supply gas to China through Mongolia after a legally binding memorandum was signed for the construction of the Power of Siberia 2 and Soyuz-Vostok transit gas pipelines in beijing on September 2. 

Russian gas supplies to China via the Power of Siberia pipeline began in 2019 as part of a long-term gas purchase agreement between Gazprom and CNPC. Every year since 2020, supplies have exceeded annual contractual obligations. In 2024, 31.12 billion cubic metres of gas were exported via the pipeline. In the first eight months of 2025, Gazprom increased its natural gas supplies to China by 28%. On 1 December 2024, one month ahead of the original deadline, daily deliveries via the Power of Siberia pipeline reached the maximum contractual level (38 billion cubic metres per annum).

By Sabina Mammadli