Siberia 2's power "changes", key factor withdraws? Another blow to Russia's "financial lifeline"

Recently, Mongolia's coalition government announced its development plan until 2028, in which the Power of Siberia 2 project was unexpectedly eliminated.

Gazprom temporarily suspends gas supplies to China? via the 'Power of Siberia' pipeline for maintenance. (Source: Top War)

Mongolia's participation is key to the Power of Siberia 2 project.

Much of the 2,594km pipeline will pass through the country that neighbors both Russia and China, requiring Mongolia to be involved in negotiations over construction costs and transit costs.

According to SCMP , Power of Siberia 2 is of particular importance to Russia, being a "financial lifeline" in the context of Moscow facing severe sanctions from the West and continuing to maintain a special military campaign in Ukraine.

Meanwhile, Russian Foreign Ministry Spokesperson Maria Zakharova said that the Power of Siberia 2 project remains at a high level of readiness.

Referring to the change from the Mongolian side, Ms. Zakharova said: "If initially the Mongolian partners wanted to limit their role to a gas transit country, now the possibility of using part of the cheap gas from the project for the development of their economy, industry and infrastructure is being considered."

She stressed that the project will be implemented after Russia and China agree on price and output. At the same time, Gazprom and China National Petroleum Corporation (CNPC) are continuing negotiations.

Russia currently supplies gas to China via the Power of Siberia pipeline, part of the Eastern Route.

The Power of Siberia 2 pipeline is a joint project between CNPC and Gazprom, estimated to take at least five years to complete and will supply 50 billion cubic meters of gas per year from Russia to China.

Most of Russia's huge gas reserves on the Yamal Peninsula were originally intended for European customers, but the extraordinary military campaign in Ukraine has caused Moscow to lose most of these major customers.

Russia must step up efforts to develop new markets in China, the world's largest consumer of natural gas.

Source: https://baoquocte.vn/suc-manh-siberia-2-co-bien-nhan-to-then-chot-rut-lui-them-don-giang-vao-huet-mach-tai-chinh-cua-nga-284013.html