Putin and Xi to Meet to Discuss Power of Siberia 2 Gas Pipeline

Power of Siberia 2 Pipeline Negotiations and Energy Stakes

The Power of Siberia 2 pipeline has remained under negotiation for years, with the project sitting at the center of upcoming discussions in Bishkek. The proposed infrastructure would carry natural gas from Russia’s Yamal Peninsula through Mongolia to China, supplying up to 50 billion cubic meters of Russian gas annually. Russia is pushing the project to sharply expand natural gas exports to China after the war in Ukraine and subsequent Western sanctions narrowed its access to European markets. While the two nations have agreed in principle to move ahead, disagreements over pricing and supply terms have stalled a final pact. Yuri Ushakov, foreign policy adviser to the Kremlin, said that the two leaders would discuss the possibility of finalizing an agreement during the Bishkek summit, calling it “a very important summit for us” regarding expanding cooperation and international affairs.

Strategic Divergence Between Moscow and Beijing

Divergence over supply terms and pricing prevented a breakthrough at the previous summit between Xi and Putin in Beijing in May. Analysts point out that Beijing can use Russia’s reliance on alternative Asian export outlets as negotiating leverage to secure more favorable pricing, while Moscow accelerates its strategic pivot toward Asian energy markets. While the Kremlin has outlined a broad agenda covering bilateral ties and major international developments, the Chinese Foreign Ministry has kept details of the bilateral schedule private. The ministry stated only that Xi would discuss ways to expand cooperation and regional issues with other participating leaders on the sidelines of the multilateral gathering.

The Broader Shanghai Cooperation Organization Summit

The bilateral talks take place under the framework of the Shanghai Cooperation Organization, a multilateral body launched in 2001 by China and Russia alongside Central Asian states. The organization has since expanded to include Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, India, Pakistan, Iran, and Belarus, bringing its total membership to 10 nations. The summit runs from the 31st through the 1st of next month in the Kyrgyz capital.