Putin wants to convince Xi to build a new gas pipeline from Russia to China. Photo: Getty Images

Kremlin leader Vladimir Putin is hoping for an in-person meeting with Chinese President Xi Jinping to convince him to approve the new Power of Siberia-2 gas pipeline.

Source: The Moscow Times, an independent Amsterdam-based news outlet

Details: The Kremlin expects the pipeline to double Russia's gas exports to China. The project has been under discussion for more than 10 years, while construction was originally scheduled to begin two years ago.

Putin now wants to raise the issue again at the Shanghai Cooperation Organisation (SCO) summit in Bishkek, where he will meet Xi for the second time since the beginning of 2026. The Kremlin leader will also meet Ding Xuexiang, Vice Premier of the State Council of China, who heads the intergovernmental commission on energy cooperation on the Chinese side.

Since the start of the full-scale war in Ukraine, Putin has visited China in February 2022, October 2023, May 2024, September 2025 and May 2026.

Following his penultimate visit, Putin announced that the pipeline, with a planned capacity of 50 billion cubic metres of gas per year, had been agreed upon and that a "legally binding memorandum" had been signed. He also said gas supplies to China would soon increase to 100 billion cubic metres per year.

However, the Chinese side has never publicly confirmed his statements. Power of Siberia-2 and gas were not mentioned in any of the 42 bilateral documents that have been signed.

The Kremlin and Beijing have yet to settle the key issue of the gas price. Sources told The Wall Street Journal that Beijing wants the price reduced to around US$50 per 1,000 cubic metres, close to Russia's domestic rate.

That is five times lower than the current price under the Power of Siberia-1 pipeline, which was launched in 2019 and already offers a substantial discount. This year, the price is US$258.8 per 1,000 cubic metres – 39% less than the roughly US$420.2 paid by other foreign customers of Russian state-owned energy giant Gazprom.

Next year, China will pay US$223.9 per 1,000 cubic metres for the gas, a further reduction that will bring the discount to 34%.

During Putin's latest visit to Beijing, Chinese officials reportedly asked the Russian delegation not to raise the issue of Power of Siberia-2 again until Moscow is willing to change its pricing terms, according to WSJ sources.

Background:

• In 2025, Russia lost its status as the largest exporter of pipeline natural gas, falling behind Norway.
• After Kremlin leader Vladimir Putin visited China in May, shares in Gazprom plunged sharply because the two sides failed to reach an agreement on Power of Siberia-2.
• The company may have lost around RUB 100 billion (US$1.1 billion) as a result.

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