Russian President Vladimir Putin and Chinese President Xi Jinping have met in Beijing to accelerate negotiations on the massive 'Power of Siberia 2' (PoS2) gas pipeline.
China's urgency stems directly from a growing energy security crisis. The recent blockade of the Strait of Hormuz, a chokepoint for nearly a quarter of the world's seaborne oil trade, has exposed China's deep vulnerability to disruptions in maritime supply chains. For Beijing, the PoS2 is no longer just an economic project; it has become a crucial piece of strategic infrastructure—an insurance policy against geopolitical instability that threatens its energy lifeline.
Meanwhile, Russia is negotiating from a position of necessity. Ukrainian drone attacks have inflicted significant damage on its oil refineries, curbing its export capacity. Concurrently, Western sanctions targeting its 'shadow fleet' of tankers and creating friction in international payment systems have squeezed its revenue streams. Securing a long-term, large-volume offtake agreement with China, likely settled in local currencies, offers a vital financial backstop and a way to bypass Western financial infrastructure.
The timing of the summit is also significant, occurring just days after a visit from U.S. President Trump. This sequencing allows China to project an image of diplomatic centrality, engaging with both global powers and enhancing its leverage in the PoS2 negotiations. While the pipeline's route and capacity were agreed upon in a 2025 memorandum, the critical issues of pricing and financing remain unresolved. The current geopolitical pressures on both sides have created a powerful incentive to finally bridge this gap and seal the deal.
- Power of Siberia 2 (PoS2): A major natural gas pipeline planned to run from Russia to China through Mongolia, designed to supply 50 billion cubic meters of gas annually.
- Strait of Hormuz: A narrow maritime chokepoint between the Persian Gulf and the Gulf of Oman, critical for global oil transportation.
- Shadow Fleet: A term for a fleet of oil tankers operating with unclear ownership and insurance, often used to transport oil from sanctioned countries like Russia.