September 16, 2025

Gas Cooperation between China and Russia in the Context of Western Sanctions Policy: Future Prospects and the Choice of Intermediary Countries

Key Points

Gas supplies from Russia to China are increasing, contrasting with a fall in total Russian pipeline gas exports.
Exports to China are made at competitive prices that satisfy both Russia and China, fueled by high supply growth.
The analysis includes comparison of new gas supply routes through Mongolia and Kazakhstan, emphasizing financial aspects.
Overall, cooperation in the gas sector is beneficial for both countries, despite a few controversial projects like Power of Siberia - 2.

Abstract

The article considers gas cooperation between China and Russia in the context of the Western sanctions policy towards Russia, as well as its prospects. Such indicators as the volume of natural gas exports to China from 2021 to 2024, the rate of export growth over the same period, gas prices and routes through which gas is supplied to China are analyzed. The author concludes that gas supplies from the Russian Federation to China are steadily growing against the backdrop of a decrease in the total volume of Russian pipeline gas exports. Moreover, gas is exported to China at prices that suit both parties to the agreements, given the high growth rate of supplies. Particular attention is paid to the analysis of the routes through which gas is supplied from Russia to China. The work focuses on a comparison of two new proposed routes for gas supplies from the Russian Federation to China via Mongolia and Kazakhstan based on a number of production and financial characteristics. It is concluded that cooperation between China and Russia in the gas sector is mutually beneficial, with the exception of some projects such as Power of Siberia - 2.

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