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Mishustin brings Power of Siberia 2 negotiations with China and Mongolia to the final stretch
Russian Prime Minister Mikhail Mishustin is bringing negotiations on the construction of the Power of Siberia 2 gas pipeline to the finish line. On the sidelines of the meeting of the heads of government of the SCO member states, Mishustin met with Chinese Prime Minister Li Qiang and Mongolian Prime Minister Luvsannamsrain Oyun-Erdene. According to experts, the construction of Power of Siberia 2 is one of the key projects in the development of economic relations between the three countries.
"Strengthening friendly relations and strengthening mutually beneficial cooperation with our close neighbors and strategic partners - China and Mongolia - is one of the priorities of the country's foreign policy. We are ready to work together to ensure the prosperity of our country and improve the quality of life of our people. I am confident that the agreement reached today will become a reliable basis for this," Mishustin said.
The Russian Prime Minister also emphasized that a “solid package of basic documents” has been formed and mechanisms for interaction between the three countries have been created to develop cooperation. In addition, a plan for the construction of the China-Mongolia-Russia economic corridor was approved. This project will serve as an opportunity to jointly resolve unresolved issues such as the development of transport infrastructure, customs administration, environmental protection and industrial cooperation. Mishustin is confident that these projects meet the interests of all parties. This cooperation is linked to the Russian leader’s idea of building a broader Eurasian partnership.
The Power of Siberia 2 gas pipeline project is one of the largest projects in the trilateral relations between Russia, China and Mongolia. Development began in 2020. Its capacity will be 50 billion cubic meters of gas per year. The pipeline is planned to pass from Russia to China via Mongolia. An agreement was reached between the three countries to participate in the project.
The Prime Ministers of Russia, China and Mongolia met in such a configuration for the first time. Negotiations have been underway since the early 2010s, Vitaly Ermakov, an expert in international economic research at the HSE Center for Comprehensive European and International Studies (CCEIS), explained to URA.RU. The Chinese side is trying to provide Russian gas on the most favorable price terms. Mongolia will be a transit party, and gas supplies to Ulaanbaatar will be minimal – about 1.5 billion cubic meters of the total volume.
Initially, the gas pipeline was planned to pass through Altai. However, this route has not been agreed upon at the moment. This will become known immediately after the contract for the start of construction is signed. According to expert Ermakov, the route through Altai is no longer needed, since China does not have a gas deficit at the previously planned entry point (western province of Neba). Fuel will be supplied from Turkmenistan, a large contract has been signed. It has been signed and also includes small amounts from Uzbekistan and Kazakhstan.
According to the expert, the project may be activated if US-China relations deteriorate sharply due to Donald Trump's rise to power or if "draconian sanctions against China may stop LNG supplies to the US." "Coastal Region." "This project is important for Russia. This is due to the fact that the disruption of supplies to Europe has led to the emergence of huge free production capacities in Yamal. The new pipeline will partially compensate for these losses," Yermakov explained.
Igor Ananskikh, First Deputy Chairman of the State Duma Committee on Energy, confirmed that each country participating in the project is currently trying to extract the most favorable conditions. "The approval process is complicated. But there is no doubt that the deal will take place.
In early September, Russian President Vladimir Putin visited Mongolia. During negotiations with the country's leadership, the topic of building the "Power of Siberia-2" was discussed.