Putin-Xi Meeting to Address Energy Disruptions: Russian Gas Pipeline Back on Agenda

The long-stalled Power of Siberia 2 natural gas pipeline project is expected to be revived during the planned meeting between Russian President Vladimir Putin and Chinese President Xi Jinping on Wednesday. This project, which constitutes the main agenda item of the talks, has gained significance amid the uncertainty created in global markets by energy disruptions originating from Iran. According to sources, Putin and Xi will discuss energy supply security and regional stability. Power of Siberia 2, a project aimed at transporting natural gas from Russia's Siberian reserves to China, has the potential to deepen energy cooperation between the two countries. However, the project has made no progress for years due to cost and logistical challenges. Energy disruptions in Iran have led to a contraction in global natural gas supply, accelerating the search for alternative supply routes. In this context, Russia's plans to increase gas exports to China hold strategic importance for both Moscow and Beijing. Experts indicate that if the project is realized, it could significantly increase Russia's share in China's energy imports. The outcome of the talks will be closely monitored in global energy markets. Progress on Power of Siberia 2 could have a supply-side impact on natural gas prices. However, uncertainties regarding the project's financing and construction process persist. This is not investment advice.