A significant milestone was achieved as a new gas supply connecting Russia and China was inaugurated in a live ceremony witnessed by Chinese President Xi Jinping and Russian President Vladimir Putin.
The natural gas will be transported from Russia to China through the “Power of Siberia” pipeline. This pipeline marks the commencement of a trade agreement between Russia and China, which is projected to reach a value of $200 billion by 2024. The commencement of the new gas supplies, observed on Monday, marks the initiation of three major energy projects in Russia. Russia has been strengthening its economic relationship with China amidst ongoing economic tensions with western nations, as China remains a significant buyer of Russian natural gas.
Concurrently with the gas supply to China, Russia is also progressing on the development of two additional pipelines in the west. These pipelines will bypass Ukraine, a traditional transit point for Russian gas. The “TurkStream” pipeline is slated for release in January, linking Russian gas to Turkey in a key development eagerly awaited by both Putin and Turkish President Recep Erdogan.
The third energy project, “Nord Stream 2,” is anticipated to increase Russian gas exports to Germany twofold. This pipeline is scheduled for launch around mid-2020. Analysts foresee that these three pipelines will not only bring economic benefits but also have political implications for Russia. By leveraging these pipeline networks, Russia is poised to enhance its presence in both the lucrative European energy market and the expanding Chinese market.
