«Gazprom» and the China National Petroleum Corporation (CNPC) signed a memorandum on the construction of the «Power of Siberia — 2» gas pipeline, as well as the transit gas pipeline through Mongolia «Union — East», reports «Interfax» citing Gazprom's chairman Alexey Miller.
Discussions of this megaproject have dragged on for years. Russia promoted it to compensate for reduced supplies to Europe after the invasion of Ukraine, while China showed some caution. Last year, the Financial Times reported, citing its own sources, that negotiations between Russia and China on the construction of the «Power of Siberia — 2» pipeline had stalled because Beijing demanded gas supplies at domestic Russian prices, which is extremely unprofitable for Russia.
In August last year, the project was suspended, and Mongolia, through whose territory the pipeline to China is supposed to pass, did not include it in its national development plan until 2028.
However, the situation changed over the year. According to Miller, the project will allow the supply of 50 billion cubic meters of gas per year from Russia to China via transit through Mongolia. It is planned that under the new agreement, supplies will be carried out for 30 years. In addition, as Miller stated, the parties agreed to increase supplies via the «Power of Siberia» pipeline from 38 billion to 44 billion cubic meters per year. Gas supply volumes under the «Far Eastern Route» project will be increased by 2 billion per year from the current 10 billion.
He also clarified that currently, payments for gas are made in rubles and yuan — 50/50.
Russian gas supplies to China via the «Power of Siberia» pipeline began in 2019 under a long-term contract between «Gazprom» and CNPC. In 2024, 31.12 billion cubic meters of gas were exported via the pipeline.
Also, after negotiations within the framework of the SCO summit, China introduced a visa-free regime for Russian citizens. From September 15, they will be able to enter China without a visa, reported the official representative of the Ministry of Foreign Affairs of the republic, Guo Jiakun. To visit the country for up to 30 days, only a foreign passport will be required. Guo clarified that the visa-free regime will last for a year, after which it will either be extended or canceled. The decision applies to Russians who come to China for tourism, business, excursions, visits to relatives, as well as for exchanges.
Previously, a visa-free regime for Russians was only available as part of tourist groups.
Photo: TASS