Putin-Xi talks revive stalled Russian gas pipeline as Iran war rattles energy markets

Key points

• Russian President Vladimir Putin arrived in Beijing on Wednesday to meet Chinese leader Xi Jinping, with the long-stalled Power of Siberia 2 natural gas pipeline on the agenda, as the Iran war disrupts energy supplies.
• Kremlin foreign policy aide Yuri Ushakov said Tuesday that the project "will be discussed in great detail between the leaders." The planned 2,600-kilometer pipeline would carry 50 billion cubic meters of gas annually from Russia's Yamal fields to China via Mongolia.
• Moscow and Beijing signed a legally binding memorandum to advance construction in September 2025, but pricing, financing terms, and a delivery timeline remain unresolved.
• China reportedly wanted pricing terms for the new pipeline to match Russia's domestic rate of around $120-130 per 1,000 cubic meters, while Moscow is seeking terms closer to Power of Siberia 1, which analysts estimate would more than double that figure.
• China has been a major buyer of Moscow's energy,...