New Delhi: In a strategic move that could reshape global energy dynamics, Russia and China have finalised a major gas pipeline agreement through Mongolia, marking a new phase in their deepening bilateral ties.
The deal was sealed during a high-level meeting between Russian President Vladimir Putin and Chinese President Xi Jinping, held in Ulaanbaatar on September 2.
The pipeline, dubbed “Power of Siberia-2,” is expected to deliver up to 50 billion cubic metres of Russian natural gas annually to China, significantly boosting Beijing’s energy security while offering Moscow a vital alternative to European markets amid ongoing Western sanctions.
This development comes at a time when US President Donald Trump’s tariff policies and geopolitical manoeuvres are being viewed as having backfired, inadvertently pushing Russia and China closer together. Analysts suggest that the deal represents a diplomatic setback for Washington, which has long sought to isolate Moscow and counter Beijing’s growing influence.
The pipeline will traverse Mongolia, a neutral partner in the region, and is seen as a symbol of Eurasian cooperation. The agreement also reflects China’s long-term strategy to diversify its energy sources and reduce dependence on maritime routes vulnerable to geopolitical tensions.
According to early reports, the project will be completed within the next 30 months, with construction expected to begin by early 2026. The deal is being hailed as a win-win for both nations, with Russia securing a stable buyer for its gas exports and China gaining access to cleaner energy at competitive rates.
Experts believe this move could accelerate the shift in global energy alliances, especially as Europe continues to grapple with energy shortages and price volatility. The pipeline is also expected to strengthen the Shanghai Cooperation Organisation’s economic framework and reinforce the emerging multipolar world order.