“Why China’s Rejection of the Power of Siberia-2 Project is a Blow for Russia and Gazprom”

China’s rejection of the Russian Power of Siberia-2 project has put Russia and Gazprom in a difficult position, analyst Anatoly Nesmiyan notes.

Putin’s attempts to negotiate an increase in gas supplies to China have reached an impasse for a reason. Beijing’s refusal from the Russian project “Power of Siberia – 2” with a capacity of 50 billion cubic meters (which the Kremlin has been promoting for more than 7 years) is an unpleasant blow for Moscow, but they are implementing China’s long-term strategy. Although Turkmen gas costs China 30% more than Russian gas,
Beijing has given the green light to the Line D project, which will import 30 billion cubic meters from Turkmenistan annually.

This fits in well with the concept of supply diversification, since the European history with the monopoly presence of Gazprom in its market has taught many who know how to learn: under no circumstances should one fall into complete dependence on Russia. The Kremlin authorities do not know how to learn, therefore, instead of one bankrupt model, they offer it to China. What China impenetrably politely, but quite firmly refuses, writes in its Telegram channel economic analyst and blogger Anatoly Nesmiyan.

“The Power of Siberia 1 is a completely sufficient project that satisfies China in terms of creating reserve capacities in case of unforeseen situations. Turkmen gas is a way to prevent dependence on Russian gas, as well as to get an instrument of price pressure on it. But the Kremlin ones can also be understood: they are bankrupt. And for their souls, except for raw materials, they have nothing, so they try to dump it to anyone and for any money, “
– emphasizes the expert.

Meanwhile, gas production in Russia is declining, Europe is not frozen, and importers are suing Gazprom for billions of dollars in lawsuits for violating supplies.

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