Siberia Gas Pipeline Deal: Open challenge to US in the field of energy, China-Russia signed gas deal

Siberia Gas Pipeline Deal: China and Russia have taken several important steps in recent years to challenge the US-led global order and the sanctions and tariffs imposed by it, further strengthening their strategic partnership. During the recent Shanghai Cooperation Organisation (SCO) summit, the two countries signed a historic agreement to build the Power of Siberia 2 gas pipeline. This agreement will not only deepen trade relations between the two countries but will also strengthen their position in the global energy market.

Power of Siberia 2: A new energy corridor

Gazprom chief Alexei Miller announced the deal after high-level talks between Russian President Vladimir Putin and Chinese President Xi Jinping in Beijing. Mongolian leader Khurelsukh Ukhnaa was also present in the trilateral talks as Mongolia will act as an important transit point for this pipeline.

According to Miller, the Power of Siberia 2 pipeline, when completed, will transport 50 billion cubic meters of natural gas annually from Russia to China via Mongolia. The agreement ensures gas supplies for 30 years, which is crucial for energy security and economic stability for both countries. It is worth noting that China is already the largest buyer of Russian oil, and this new agreement will further enhance energy cooperation between the two countries.

Alternative vision for the global order

This week, China and Russia jointly proposed an alternative to the US-led global order. The proposal reflects their shared ambition to promote a multipolar world order with less dominance of Western countries. Both countries believe that the current global economic and political framework does not fully reflect their interests, and are therefore advocating for an order that is more inclusive and favourable to them.

Economic relief for Russia

Following Russia's military operation on Ukraine, Western countries imposed tough sanctions on Russia, resulting in Russia suffering heavy losses in European energy markets. In this context, agreements such as Power of Siberia 2 will serve as an economic lifeline for Russia. The growing energy trade with China will not only provide economic stability to Russia but will also help mitigate the impact of Western sanctions.

On the other hand, Western countries have long accused China of providing economic and strategic support to Russia in the Ukraine crisis. This new agreement may further fuel this criticism, as it signals deeper economic integration between the two countries.

Future prospects

The Power of Siberia 2 pipeline and other joint projects symbolize the growing cooperation between China and Russia. This partnership is not only limited to the energy sector but is also expanding in areas such as trade, technology, and defense. Both countries aim not only to counter Western sanctions but also to further strengthen their position on the global stage.

This agreement will also have an impact on regional and global energy markets. For countries like Mongolia, which will play the role of transit hub in this project, it will open a new door of economic opportunities. Also, this project will also contribute to diversifying the global energy supply chain.