The Ukrainian president had accused country of trying to deter leaders from taking part in planned gathering
Here’s a bit of detail from the Financial Times’ report that the Power of Siberia-2 gas pipeline project has run into trouble. Spokespeople for both Beijing and Moscow issued statements in relation to reports that the project is deadlocked – so in case you’ve not read the FT’s report, this is what that’s all about.
Citing three people close to the matter, the FT reported that the Power of Siberia-2 gas pipeline project has stalled over demands made by Beijing on price and supply levels.
What is Beijing asking for? It concerns both prices and supply, according to the FT’s sources. The people familiar with the matter told the newspaper that China wants to pay little more than Russia’s heavily subsidised domestic prices and would only commit to buying a small proportion of the pipeline’s planned annual capacity.
What does this mean? It shows how Beijing has the upper hand in this deal – Russia’s invasion of Ukraine has left president Vladimir Putin increasingly dependent on China as Gazprom suffers heavy losses.
What is the Kremlin asking for? When Putin and Xi met last month in Beijing, Putin made three key requests, according to the people familiar with the matter. A deal on the pipeline; more Chinese bank activity in Russia; and for China to decline to attend a peace conference being organised by Ukraine.
