FT: Putin at a meeting with Xi spoke about the "forces of Siberia-2", the summit on Ukraine and banks
Kyiv • UNN
Putin discussed with Xi Jinping the suspended operation to build the power of Siberia-2 gas pipeline due to China's demands to reduce prices and supply volumes, potential financing by Chinese banks of the Russian defense industry in the face of US sanctions, and China's refusal to participate in the summit on Ukraine in Geneva.
Kremlin chief Vladimir Putin at a meeting with Chinese President Xi Jinping addressed him on three issues, sources told The Financial Times. We are talking about the agreement on the "power of Siberia-2", refusal to participate in the conference on Ukraine in Geneva and expansion of the activity of Chinese banks in Russia. According to the FT, the agreement on the gas pipeline was suspended due to China's price requirements, reports UNN.
Details
Moscow considers Beijing's demands regarding the price and volume of supplies unfounded, according to a British newspaper. According to her, China requested a price "close to Russian domestic prices, which are heavily subsidized." China is also said to want to buy a small portion of the pipeline's planned capacity of 50 billion cubic meters of gas per year.
FT sources noted that Gazprom CEO Alexey Miller did not join the Russian delegation during Vladimir Putin's visit to Beijing. According to the newspaper, in an unpublished report of a major Russian bank, power of Siberia-2 was excluded from the basic forecast for Gazprom, which led to a decrease in the company's expected profit by almost 15% in 2029, when, according to the bank's forecast, the gas pipeline should be launched.
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According to the British newspaper, China and Russia are discussing that one or more banks "finance trade in components for the Russian defense industry", which will lead to US sanctions. Washington accuses Beijing of supporting Russia's military-industrial base for the supply of machine tools, semiconductors and other dual-use goods. China denied the charges and called trade relations between Russia and China "Normal".
The FT noted that on Friday, May 31, China announced that it would miss the Ukraine summit in Geneva. According to the newspaper, the agreement on the "power of Siberia-2" "remains remote", and the alleged cooperation with Chinese banks — in a smaller volume than Russia requested.
The Kremlin and Chinese authorities did not promptly respond to the FT's request for comment. Gazprom declined to comment.
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