China disregards American sanctions; Turkey shifts toward Russia alliance
Russia and China have reached an agreement on the construction of the "Power of Siberia 2" pipeline, an expansion of the existing "Power of Siberia" pipeline. The announcement was made on Tuesday, following the Shanghai Cooperation Organization (SCO) conference, and was reported by Gazprom.
The first "Power of Siberia" pipeline is expected to deliver its first gas to China in December 2019. The new pipeline, while yet to disclose the final pricing details, will traverse immense distances and challenging terrain, resulting in a lower price compared to what Gazprom charges European buyers. Gazprom CEO Alexei Miller acknowledged this lower price, attributing it to the pipelines' demanding routes.
The exact route and capacity of the "Power of Siberia 2" pipeline have not been specified in the agreement. However, the price negotiations for the gas pipeline are represented by Gazprom. The agreement's lack of progress on pricing suggests that China is demanding significant discounts from Russia, according to pro-government Turkish newspaper Sabah.
The Sabah article implies potential tension between China and the West due to China's partnership with Russia, as it disregards Western demands to scale back partnership with Moscow. The article further suggests that President Xi Jinping is disregarding these demands with this step.
The decision is being watched with interest in many parts of the world. The new pipeline agreement between Russia and China underscores the growing strategic partnership between the two countries, particularly in the energy sector. The lower price is a significant development, as it could potentially reshape the global gas market dynamics.
The "Power of Siberia 2" pipeline agreement has not yet included pricing details, but the potential cost savings could provide a competitive edge for China in its energy negotiations with other nations. The exact terms of the agreement will be crucial in determining the impact of this deal on the global energy market.
As the details unfold, the world will continue to closely watch this development, with implications for the geopolitical landscape and the energy market alike.
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