Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Russia’s Gas Woes Deepen: A Look at Putin’s Troubled Visit to China

Daniel Kim Views  

Reuters-Yonhap News

The Financial Times (FT) cited an insider and reported on the 2nd that Russian President Vladimir Putin visited China last month. However, due to China’s excessive demands, both countries failed to finalize the Power of Siberia 2 gas pipeline deal.

It was speculated that Chinese President Xi Jinping is leveraging Putin’s precarious position due to Western sanctions resulting from the Ukraine war.

Putin, who has begun his fifth term in office, sought to finalize a gas pipeline construction deal during his two-day visit to China starting May 16 but was unsuccessful as negotiations fell through. According to sources, this was due to China’s excessive demands regarding gas supply volume and price. China expressed its willingness to buy gas close to Russia’s very cheap domestic price, which includes subsidies. They also stated China would only purchase a small fraction of the planned annual transport capacity of 50 billion cubic meters for Power of Siberia 2.

This is expected to deal another blow to Gazprom, Russia’s state-owned energy company. Despite Gazprom previously selling gas to Europe at high prices to subsidize domestic markets, these channels have now been blocked due to Western sanctions following Russia’s invasion of Ukraine.

Gazprom’s European exports, which averaged 230bcm annually over the past ten years before the Ukraine war, fell to 22bcm last year and are expected to decrease further this year. Gazprom had its largest deficit in the last 25 years, recording a net loss of 629 billion rubles (about $8.6 billion) last year.
*bcm=billion cubic meters

As compensation for the loss, Russia has repeatedly mentioned that an agreement on the Power of Siberia 2, an extension of the Power of Siberia gas pipeline completed in 2019, will be reached soon with China. Despite hoping for construction to begin this year, this goal was not met.

The FT indicated that may be Putin becoming more economically dependent on Xi due to the invasion of Ukraine. There is also a perspective that China has gained the upper hand in bilateral relations.

Alexander Gabuev, Director of the Carnegie Russia Eurasia Center, explained, “The fact that Russia has no alternative land route for gas exports means Gazprom will likely have to accept China’s terms,” and “China sees time as being on their side and seems to be waiting for Russia to offer the best conditions.”

Daniel Kim
content@viewusglobal.com

Comments0

300

Comments0

[WORLD] Latest Stories

  • Is This the Right Move? America Commits to Decade of Military Support for Ukraine
  • South Korea to Pioneer Mineral Exploration in Kazakhstan
  • Hungary Condemns EU Tariff Proposal on China
  • Is Putin Really Going to North Korea? Here's What We Know
  • Mozambique Set to Transform Global Energy With $100 Billion Gas Reserves
  • Will Trump Enforce Mandatory Military Service if Elected?

Weekly Best Articles

  • Is This the Right Move? America Commits to Decade of Military Support for Ukraine
  • Are Military Drills Too Harsh? South Korean Soldier Dies from Shock After Training
  • Referee’s Blunder Sparks Outrage as India Misses Crucial World Cup Qualifier
  • South Korea to Pioneer Mineral Exploration in Kazakhstan
  • 63-Year-Old Saudi Man Marries 53 Times to Find His True Love
  • Transgender Swimmer’s Olympic Dreams Dashed by Recent Ruling
  • From K-Pop to Mainstream: How ‘K-Hearts’ Became the Latest Craze Among Gen Z in the U.S.
  • He Said, She Said: Elon Musk and SpaceX Hit with Harassment Lawsuit by Former Employees
  • Hungary Condemns EU Tariff Proposal on China
  • National Zoo of North Korea Welcomes a Baby Boom: Over 200 Newborns This Year!
  • Lionel Messi Hints at Retirement in Latest Interview
  • Did You See That? Fake Video of Trump Dissin’ Japanese PM Is Blowing Up

You May Also Like

  • 1
    Anticipating NVIDIA's Next Big Leap: The $5 Trillion Market Cap

    BUSINESS 

  • 2
    Starbucks' Price Hike Backfires, Driving Away Even Its Most Devoted Fans

    DEBATE 

  • 3
    Volvo FH16 Introduces All-New D17 Engine Technology: More Power, Less Fuel

    BUSINESS 

  • 4
    U.S. Lawmakers Demand Sanctions on Chinese Battery Giants Over Forced Labor Claims

    BUSINESS 

  • 5
    UAE Backs US Restrictions on Semiconductors Exports To China

    BUSINESS 

Popular Now

  • 1
    LE SSERAFIM Dominates Billboard Charts for 16 Weeks!

    ENTERTAINMENT 

  • 2
    Zico's 'SPOT!' Hits the Billboard Charts Again: A Six-Week Streak to Remember!

    ENTERTAINMENT 

  • 3
    Welcome Back to Civilian Life! BTS Jin Discharged After 18 Months in the Army

    ENTERTAINMENT 

  • 4
    Celebrations Erupt as BTS' Jin Marches into Civilian Life!

    ENTERTAINMENT 

  • 5
    Former Hello Venus Member Yoo Ara Reveals She Has Cancer

    ENTERTAINMENT 

Weekly Best Articles

  • Is This the Right Move? America Commits to Decade of Military Support for Ukraine
  • Are Military Drills Too Harsh? South Korean Soldier Dies from Shock After Training
  • Referee’s Blunder Sparks Outrage as India Misses Crucial World Cup Qualifier
  • South Korea to Pioneer Mineral Exploration in Kazakhstan
  • 63-Year-Old Saudi Man Marries 53 Times to Find His True Love
  • Transgender Swimmer’s Olympic Dreams Dashed by Recent Ruling
  • From K-Pop to Mainstream: How ‘K-Hearts’ Became the Latest Craze Among Gen Z in the U.S.
  • He Said, She Said: Elon Musk and SpaceX Hit with Harassment Lawsuit by Former Employees
  • Hungary Condemns EU Tariff Proposal on China
  • National Zoo of North Korea Welcomes a Baby Boom: Over 200 Newborns This Year!
  • Lionel Messi Hints at Retirement in Latest Interview
  • Did You See That? Fake Video of Trump Dissin’ Japanese PM Is Blowing Up

Must-Reads

  • 1
    Anticipating NVIDIA's Next Big Leap: The $5 Trillion Market Cap

    BUSINESS 

  • 2
    Starbucks' Price Hike Backfires, Driving Away Even Its Most Devoted Fans

    DEBATE 

  • 3
    Volvo FH16 Introduces All-New D17 Engine Technology: More Power, Less Fuel

    BUSINESS 

  • 4
    U.S. Lawmakers Demand Sanctions on Chinese Battery Giants Over Forced Labor Claims

    BUSINESS 

  • 5
    UAE Backs US Restrictions on Semiconductors Exports To China

    BUSINESS 

Popular Now

  • 1
    LE SSERAFIM Dominates Billboard Charts for 16 Weeks!

    ENTERTAINMENT 

  • 2
    Zico's 'SPOT!' Hits the Billboard Charts Again: A Six-Week Streak to Remember!

    ENTERTAINMENT 

  • 3
    Welcome Back to Civilian Life! BTS Jin Discharged After 18 Months in the Army

    ENTERTAINMENT 

  • 4
    Celebrations Erupt as BTS' Jin Marches into Civilian Life!

    ENTERTAINMENT 

  • 5
    Former Hello Venus Member Yoo Ara Reveals She Has Cancer

    ENTERTAINMENT 

Share it on...