Moscow [Russia], September 3 : Russian President Vladimir Putin described the relationship between Russia and China as being at an "unprecedentedly high level" after the two nations signed a landmark agreement to construct the Power of Siberia-2 pipeline, CNN reported.
This comes against the backdrop of a shifting US approach to foreign affairs and international trade, with US President Donald Trump's tariffs and increasingly isolationist policies shaking up the world order.
This massive project will transport 50 billion cubic meters of natural gas annually from western Russia to northern China via Mongolia, and is expected to offset nearly half of Russia's lost gas exports to Europe since the Ukraine war began.
During Putin's visit to China, the two leaders spent hours together, meeting with Mongolia's president, Ukhnaa Khurelsukh and engaging in formal talks and sipping tea at the Chinese leader's official residence, as per CNN.
On Tuesday afternoon, Russia's state-owned energy company Gazprom announced that a legally binding agreement had been signed for the construction of the massive Power of Siberia-2 gas pipeline, which Moscow has been trying to push off the drawing board for years.
According to CNN, the deal is a significant win for Putin, who has increasingly turned to China to replace Europe as his major gas buyer. It's also a collective show of defiance against US President Donald Trump, who is pushing countries to cut Russian energy imports as part of his attempt to end the war in Ukraine.
Gazprom CEO Aleksey Miller said that the deal includes a 30-year supply agreement, and the price of supplies will be lower than what Europe is charged.
"It will be the largest, most extensive, and most capital-intensive gas project in the world," Miller was quoted as saying by TASS.
However, China has yet to officially confirm the agreement, maintaining its cautious stance on the mega-project due to its ongoing transition to renewable energy and concerns about relying on a single energy supplier.
Chinese state media reports on the meeting of the leaders of Russia, China and Mongolia make no mention of the pipeline. In subsequent talks between Xi and Putin, the Chinese leader said their countries should "use major projects to drive cooperation."
When asked about the deal during a regular news conference on Tuesday, a spokesperson for the Chinese Foreign Ministry stated that China and Russia have "consistently conducted practical cooperation in various fields, including energy," and asked reporters to "contact the relevant Chinese authorities for details."
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