Vladimir Putin seeks to advance the Power of Siberia 2 gas pipeline project

Russia and China are still negotiating the terms of the gas supply contract that would enable the launch of the Power of Siberia 2 pipeline project. This project, with a capacity of 50 billion cubic meters, would link the Yamal Peninsula in Western Siberia to China. It would allow Russia to market part of the gas previously destined for the European market. China is seeking a gas price close to its domestic level, which Russia refuses. While China aims to diversify its fossil energy supply sources, including gas and oil, it does not want to become overly dependent on Russia. Russia already supplies 20% of China’s crude oil needs.