One after the other, they are historically present the legally binding agreement between and for the construction of Power of Siberia 2. But what is not particularly emphasized is that the signing of the agreement does not mean that the two sides have agreed on all about the pipeline and the supply, and secondly that the project has more political and geopolitical importance for the two countries.
Hurry the announcement of the agreement
This is at least demonstrated by the fact that the agreement was hurriedly signed, without the two sides being agreed on pricing, but also that although the planning of the pipeline by the Russian leadership is intertwined with Russian energy policy towards Europe as early as 2014 – when it was reported by the two. The “closure” of the European market where it has been selling expensive for decades -in relation to the prices it gives to -its natural gas.
But how did Russia need to need an agreement with China, which would seem to be on the terms of Beijing, while it was until recently that it appeared to keep the papers on the energy issue?
Ukraine and the history of a deal that took a long time
It is 2014 and the war in Ukraine, with Russia focusing on Crimea and Donbas, has begun. The Russian leadership is unbearably pushing the Ukrainian side, even though its soldiers who were acting within the Ukrainian territory did not bring discreetly. The political game has been set on fire internationally, with relations between Russia and the West having been at their lowest point for decades.
The Russian involvement in (before that there were plenty of friction between Russia and the EU on how Moscow used energy to pursue politics) pushes the then European leadership to accelerate the changes it discussed in its energy policy. In June 2014, the Commission calls for and receives a report by advisers entitled “The EU’s dependence on Russian gas: how a European policy can limit it”.
The conflict in Ukraine, which has already taken on dimensions, is now openly threatening the energy security of European countries, as Ukraine traditionally plays a key role in the supply of Epirus with gas from Russia after the basic pipes pass through its territory. This problem had been identified several years earlier as the disputes between Kiev and Moscow on gas had pushed Russia to close the faucet for a few days as early as 2009, but developments in Ukraine were now pressing.
As in 2014 in Brussels, the EU leadership sought tips to disengage from Russian energy and was looking for ways to create a more unified energy market based on renewable sources, the Chinese National Petroleum Company (CNPC) signed a preliminary agreement with its 300 -year -old Dollars, who, when constructed, would carry 30 billion cubic meters of gas a year for 30 years from western Siberia to Sinjiang province.
For five years the pipeline was out of discussion
The project then freely freezes until 2019, when the two sides decided to start the discussions substantially on a new basis and from scratch, as Europe did not actually be able to be recited by the Moscow energy cluster. Since then there have been some small moves, such as the establishment of a related company-a vehicle in Mongolia, as well as signatures of technical details for the construction of the pipeline-but they did not move at the speed that Moscow would like to depreciate a significant part of the cost of the war in Ukraine. According to all reports, the main problem is what exists now, the issue of price (this had prevented reports from 2020, 2021, 2022 and 2023 any announcements).
It is interesting that all this time, as Europeans and Americans have essentially proceeding to limit the Russian gas dependence on the European market, Vladimir Putin has been arguing at regular intervals that Russia would sell the European gases in Asia’s markets. He probably had this pipeline in his mind or in general to try to sell more gas to China.
This pipeline that the two sides were to build is the same as Power of Siberia 2 – though some changes have been made on the route with China’s persistence (will no longer end up in Sinjiang, but will go towards Beijing) – and all these years stayed on paper (2015). Disagreements about the details of the project.
Announcements are now talking about a pipeline passing through Mongolia, can carry up to 50 billion cubic meters of gas from the western Siberian deposits per year and its cost is expected to exceed $ 400 billion (which was the cost of the other Power Power). The actual costs will be announced when Gazprom and the Chinese National Petroleum Company come to the details of pricing and on which side will undertake which part of the project.
Beijing beats the gong and the “bear” dances
Catalyst for the signing of the agreement, however, it is estimated that it is the tension in the Middle East, and in particular the war between Israel and Iran months ago, which was particularly upset by Beijing, which buys huge quantities from the region through Iran and the Straits of Ormuz. Currently, about one -third of China’s liquefied natural gas imports comes from the United Arab Emirates and Qatar. Following the turmoil in the area caused by the Israeli and USA attack on Iran, it made Beijing more positive to further strengthen its relationship with Russia, both through the pipeline being prepared and through increased orders by Power of Siberia 1.
From the above it is understood, that although the agreement is legally binding, as Moscow makes it, there is still a way to implement the project, since at best the pipeline will start operating after 2030. The announcement of the agreement at this time is more like a concession. EU, for Ukraine while offering it a new line of funding (in the future) to rebuild its economy that has turned into a war and shows signs of intense deceleration.
For its part, China applauds that it will succeed in imposing its terms, and also sends a message of disobedience to Washington that it is not afraid of the Trump threats of sanctions and duties to countries that are “businesses” with Russia on the issue of energy. China has recently begun to receive loads of liquefied natural gas from the Russian LNG 2 sanctions, precisely to break up that it can resist West’s pressures to isolate Moscow, but its moves also seem to seek significant discounts from Russia. It is important to emphasize that analysts estimate that in whatever agreement China takes into account that in a relatively short period of time due to its investments in renewable energy, but also in nuclear, it will cover the most important part of its energy needs.
Trump: “I don’t scare me the axis”
US President Donald Trump also intervened on the issue of Russia -China, but also on Russia’s stance on Ukraine.
This comment by the Republican president that “I am not worried about the Axis against the US on the Scott Jennings radio broadcast was made after China President Xi Jinping welcomed the leaders of the Sangai Cooperation Organization, including Sagai.
Trump once again said that he was “very unhappy” with Putin, adding – without clarification – that his government plans to do something to reduce deaths in the war in Ukraine. “I’m very unhappy with Putin, that’s what I can say and we will do something to help people live,” he said.
