PressAdda
Kathmandu- Russian President Vladimir Putin has confirmed that gas flowing through the Power of Siberia 2 pipeline to China will be priced based on market principles, not political considerations.
Speaking to journalists in Beijing, Putin said Moscow and Beijing had finalized the deal structure for what is reportedly the world’s largest gas project. “This is not charity—it’s a mutually beneficial agreement based on market principles,” he stated. The announcement followed a meeting with Chinese President Xi Jinping and Mongolian President Ukhnaagiin Khurelsukh.
The pipeline, capable of delivering 50 billion cubic meters of gas per year from western Siberia through Mongolia to northern China, is expected to operate for at least 30 years. Supplies will also be available for Mongolian buyers.
Putin highlighted that China will pay market rates for Russian energy, unlike Europe, which faces higher costs while reducing its reliance on Russian oil and gas. He described the deal as the result of years of negotiation, with both sides satisfied with the outcome.
Once completed, Power of Siberia 2, combined with existing and expanding pipelines, will increase Russian gas exports to China to over 100 billion cubic meters annually.
