Russian-Chinese gas pipeline deal stalled due to Beijing's price demands

Xi Jinping and Vladimir Putin (Getty Images)

Russia's attempts to strike a deal with China to construct a gas pipeline have stalled due to Beijing's unreasonable demands regarding price and supply volumes, citing the Financial Times.

Sources revealed that China demanded to pay prices close to Russia's heavily subsidized domestic rates and committed to purchasing only a small fraction of the planned annual capacity of the 50 billion cubic meters pipeline.

Beijing's tough stance on the Power of Siberia 2 pipeline underscores that Russia's invasion of Ukraine has made dictator Vladimir Putin increasingly dependent on Chinese leader Xi Jinping for economic support.

According to insiders, the pipeline deal was one of three main requests Putin made to Xi Jinping during their meeting last month, along with expanding the activities of Chinese banks in Russia and urging China to ignore the peace conference organized by Ukraine this month.

China's stance on war in Ukraine

Officially, China proclaims a neutral stance on Russia's war in Ukraine. However, actions speak otherwise. Chinese companies continue to supply dual-use goods to Russia, which can be used for weapon production. This contradicts their neutrality claims and raises concerns in the international community.

The US has called on China to stop supporting Russia. The US State Department has clearly stated the possibility of expanding sanctions if Beijing provides arms to Moscow.

The recent visit of Russian dictator Vladimir Putin to China after his so-called inauguration and meeting with the Chinese leader suggests that certain agreements might have taken place between the countries, allowing Russia to continue its war.

The current situation indicates that China's neutrality is false. In reality, Beijing is accommodating Russia's aggression, which could have serious consequences for international security.