Russia and China want to expedite work on Power of Siberia 2, Aleksandr Novak has said

Russian President Vladimir Putin and his Chinese counterpart Xi Jinping have agreed to speed up the Power of Siberia 2 gas pipeline project, according to Deputy Prime Minister Aleksandr Novak.

The announcement on Thursday followed high-level talks in Moscow during Xi's official visit to Russia to attend the May 9 Victory Day celebrations marking the 80th anniversary of the Soviet Union's defeat of Nazi Germany.

The planned mega pipeline is expected to allow up to 50 billion cubic meters (bcm) of natural gas to be delivered annually from northern Russia to China via Mongolia. The project has experienced some delays due to deliberations on pricing and route.

"There were discussions, it is indeed an important project. A certain amount of work has already been done, including the feasibility study... The leaders gave instructions to expedite the process," Novak, who had previously served as Russia's energy minister, said.

Moscow is pursuing the project as it seeks to diversify its energy export markets amid Western sanctions and reduced European demand. For Beijing, the pipeline promises a stable energy supply to support its consumption needs.

Russia currently delivers gas to Asia's largest economy via the Power of Siberia pipeline, which is part of a $400 billion, 30-year agreement between Gazprom and CNPC which was clinched in 2014. Deliveries started in 2019, and the conduit reached its full operational capacity in December, making Russia China's leading supplier of natural gas.

Economic cooperation between the two nations has been steadily increasing despite unprecedented Western sanctions against Moscow. Bilateral turnover between Russia and China reached a record $245 billion in 2024.

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Gazprom projects that gas exports will grow further thanks to soaring demand. In December, Novak announced that Russia has begun developing a new gas pipeline to China via Kazakhstan. Once all pipelines are fully operational, he noted, the volume of Russian gas supplies to the Asian powerhouse could reach nearly 100 bcm annually.