WSJ: China Tells Russia to Stop Discussing Key Gas Pipeline Project

According to information obtained by The Wall Street Journal (WSJ), China has requested that Russia cease public discussions about the strategically important Power of Siberia 2 gas pipeline project, at least until Moscow agrees to Beijing's conditions.

WSJ notes that since Russia's invasion of Ukraine, Moscow's status in relations with China has declined significantly, mainly due to international isolation. The main disagreement between the two countries revolves around this pipeline. Before his May visit to China, Russian President Vladimir Putin publicly hinted at a possible breakthrough in negotiations. However, the Russian delegation in Beijing encountered a firm Chinese stance.

Chinese officials made it clear to the head of Gazprom that for the project to be seriously considered, the gas price must match Russia's domestic market level, which is considerably lower than global market prices. This effectively means Beijing demands that the Kremlin itself subsidize the project without investing its own funds.

WSJ sources emphasize that China also asked Russia not to discuss the issue publicly until Moscow is ready to accept the terms. A German businessman familiar with Russian-Chinese business relations described Chinese leader Xi Jinping's treatment of Putin as "an emperor receiving a guest in his palace, after which he is sent home."

For Russia, this project is vital as it seeks to redirect its gas exports to Asia after losing the European market. WSJ points out that Xi publicly shows respect for Putin but privately uses the opportunity to extract further concessions. The Chinese leader likely remembers the 1960s experience when the USSR treated China as a "little brother."

Now Beijing, without publicly humiliating Moscow, calmly exploits its weakness. Analysts note that Putin's war, aimed at regaining great-power status, has actually given China leverage over the Kremlin. Instead of forming an equal partnership, Russia has become dependent on China—its currency, market, technology, and political conditions increasingly dictated by Xi.