Russia-China Gas Price Dispute Halts Pipeline Negotiations

• •Negotiations for the Power of Siberia 2 pipeline have stalled due to price disagreements.
• •China is currently paying $248 per thousand cubic meters, significantly lower than other customers.
• •Russia's reliance on China for gas sales is critical for funding its military operations amid sanctions.

Negotiations between Russia and China over the Power of Siberia 2 pipeline have stalled due to a significant price gap for gas. Russia seeks to set prices based on the existing Power of Siberia 1 pipeline, which ranges from $250 to $260 per thousand cubic meters, while China has been purchasing gas at an average of $248 per thousand cubic meters. The ongoing conflict in Ukraine and Western sanctions have heightened Russia's dependence on China's gas purchases, which are crucial for financing its military efforts. Reports indicate that China is receiving discounts of up to 56% compared to other foreign customers. The situation reflects Russia's weakened negotiating position, exacerbated by its break with European markets. Talks for the new pipeline have reportedly made no progress, and the future of these negotiations remains uncertain as both sides hold firm on pricing.