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China and Russia Revive Talks on Stalled Gas Pipeline
 


 



Talks between China and Russia this week will include negotiations on a long-delayed natural gas pipeline linking the two countries, reviving discussions that have been stalled for years due to disagreements over cost, route, and the project's urgency, according to Bloomberg.

Moscow has long sought to secure a deal on the Power of Siberia 2 link — to tighten ties, but also to increase gas flows to the world's largest energy importer. Russia has become increasingly dependent on sales to China as it struggles to replace the European market.

Economic strain on both sides may be bringing both one step closer to a compromise.

Beijing may be ready to break previous deadlock by allowing negotiations on a higher sale price than what has previously been considered, according to people familiar with the government discussions.

It is now seeking a rate between Russia's domestic gas price and what it pays for gas through the original Power of Siberia pipeline, the people said.

There are still points of disagreement. China will press for a direct link, the people said, preferring to avoid a path through Mongolia. The original Power of Siberia connects the neighbors directly, but there were other possible routes for the second iteration.

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