Published by Global Banking and Finance Review
Posted on September 5, 2025
2 min readLast updated: January 22, 2026
Putin announced the Power of Siberia 2 pipeline to China as mutually beneficial, using market-based pricing. Mongolia will be involved, and Gazprom plans deliveries by 2030.
VLADIVOSTOK, Russia (Reuters) -Russian President Vladimir Putin said on Friday that the planned Power of Siberia 2 gas pipeline to China was a "mutually beneficial project" and the price of the gas would be based on a market formula similar to the one used for supplies to Europe.
Russia proposed the route years ago, but the plan has gained urgency as it looks to Beijing as a customer to replace Europe, which is seeking to wean itself off Russian energy supplies over Moscow's 2022 invasion of Ukraine.
Russia and China signed a binding memorandum to build the pipeline during Putin's visit to China this week, but Russian energy company Gazprom, which aims to start delivering gas via the pipeline by 2030, said pricing was yet to be agreed.
"This is one of the largest energy projects in the world," said Putin, speaking at an economic forum in Vladivostok.
He said the price would "be calculated using essentially the same formula as for deliveries to Europe ... It is absolutely market-based."
Russia has lost most of its gas market in Europe since the start of the war in Ukraine.
Mongolian Prime Minister Zandanshatar Gombojav, through whose country the new pipeline will pass, told the same event that Ulaanbaatar was ready to proceed but there were details to be worked out.
Mongolia may buy some of the Russian gas, he said.
(Reporting by Vladimir Soldatkin and Olesya Astakhova; Writing by Lucy Papachristou and Mark Trevelyan; Editing by Joe Bavier)
A gas pipeline is a system of pipes used to transport natural gas from production sites to consumers, including homes and businesses.
Market price is the current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand.
Economic implications refer to the potential effects of a project or policy on the economy, including impacts on employment, trade, and market dynamics.
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