Xi and Putin reaffirm unity but gas pipeline deal eludes Moscow again

Russian President Vladimir Putin left Beijing Wednesday with declarations of enduring friendship with China and a stack of bilateral agreements — but without the energy pipeline breakthrough Moscow was eyeing, signaling the evolving geometry of a partnership that is increasingly tilting in Beijing’s favor.

The two leaders failed to reach a breakthrough on the Power of Siberia 2 pipeline that Moscow had flagged would be “discussed in great detail,” as Russia’s gas exports to Europe have substantially shrunk following its invasion of Ukraine in 2022.

Following the summit, Russian Press Secretary Dmitry Peskov said Beijing and Moscow had arrived at an understanding on the venture’s key parameters, but “some nuances remain to be ironed out,” with no clear timeframe for the project, according to a Google translation of news agency RIA Novosti‘s report in Russian.

While Chinese President Xi Jinping stated that energy cooperation should be the “ballast stone” in China-Russia relations, he made no mention of the pipeline.

“This is a huge setback for Russia and Putin, who hinted before the visit that a breakthrough was in the works,” said Lyle Morris, senior fellow on Chinese national security and foreign policy at Asia Society Policy Institute.

Beijing may be “playing hardball at a time when Russia has lost some leverage with the European Union shutting off certain gas flows from Moscow,” Morris said. “There is no way to sugarcoat it: Putin was embarrassed by the failure to agree to the pipeline.”

Moscow regards the natural gas project as critical to redirecting its gas exports from Europe to China, while Beijing is wary of becoming overly dependent on a single gas supplier. Russia has been one of China’s top energy suppliers and increased its oil shipments to Beijing after flows through the Strait of Hormuz were severely disrupted.

The two sides had signed a legally binding memorandum to advance construction of the Power of Siberia 2 pipeline in September 2025, but talks stalled over disagreements on pricing, financing terms and delivery timelines.

The long-delayed pipeline is projected to carry up to 50 billion cubic meters of natural gas per year from Russia to China via Mongolia, building on the existing Power of Siberia 1 system, which delivers about 38 billion cubic meters of gas to China annually.