China snubs Putin's pipeline - Russia's energy strategy in doubt
According to Mikhail Krutikhin, a Russian energy expert, the Power of Siberia 2 gas pipeline project, championed by President Vladimir Putin, did not receive enthusiasm from the Chinese side during the recent meeting of the leaders of both countries in Beijing, reports The Moscow Times.
As The Moscow Times reports, during Vladimir Putin's recent visit to Beijing, China did not show interest in the Power of Siberia 2 gas pipeline project, which would supply Russian gas through Mongolia. According to Mikhail Krutikhin, a Russian energy expert (who resides in Oslo), this became clear even before the Russian delegation arrived in the Chinese capital.
China distances itself from Putin's idea
Krutikhin notes that the nominal head of Gazprom, Alexey Miller, was not even included in the representative delegation, which may indicate the marginal importance of this issue for the Chinese side. The expert emphasizes that Putin makes all decisions regarding the Russian gas giant.
The Chinese agreed to mention the Power of Siberia 2 project out of courtesy in one of the meeting's final documents. The Moscow Times reported that the gas pipeline wording is diplomatic and bureaucratic: "The parties will make efforts to speed up the investigation and agreement on the construction of a new gas pipeline from Russia to China through Mongolia."
Krutikhin points out that this provision does not oblige the parties to continue working on the project but only to "make efforts" to "promote" it. He believes promotion should be understood as further attempts to convince China to accept the Russian proposal.
Beijing's concerns over the Kremlin's geopolitical plans
According to Krutikhin, another factor discouraging China from the Power of Siberia 2 project could be Putin's statements suggesting using interconnected pipelines in eastern and western Russia for geopolitical purposes. President Xi Jinping is likely concerned about his Moscow counterpart's plans, who announced shifting gas exports from Europe to Asia and back depending on the situation.
The expert highlights that during negotiations on cooperation in the gas sector, the Chinese categorically rejected pipeline projects passing through third countries such as Mongolia or Kazakhstan. Therefore, Beijing does not find relying on gas supplies through Mongolia attractive.
As noted by The Moscow Times, crucial are the "binding" agreements with Beijing, mentioned by the Russian energy ministry, but such agreements are still absent. Krutikhin does not rule out that Gazprom might start building the gas pipeline without China's clear consent, as the company needs gas from Western Siberia both to fulfil the current 30-year contract for the Power of Siberia and the already signed agreement for the supply of 10 billion cubic metres annually to the Far East. The expert also suggests that the use of enormous funds for such projects remains an important argument for corrupt officials in the state company.
