Negotiations between Moscow and Beijing regarding the construction of the Power of Siberia 2 pipeline have stalled, according to reports from the South China Morning Post. The project, intended to significantly increase Russian gas exports to China, is currently facing a major impasse centered on the price of the natural gas to be supplied.

Sources indicate that the primary point of contention is a wide gap between the price expectations of the two nations. China is reportedly pushing for a price point that aligns with Russia’s domestic subsidized residential rates, which are approximately US$50 per thousand cubic meters, or at least the domestic industrial rate of roughly US$120–130 per thousand cubic meters. Russia, conversely, is seeking a higher price, likely to offset the massive infrastructure costs and to compensate for the loss of its traditional European market following the invasion of Ukraine.

While both nations have expressed a desire to deepen energy cooperation, the current deadlock suggests that the economic realities of the project are proving difficult to reconcile. The pipeline is viewed as a critical strategic asset for Russia to pivot its energy exports eastward, but the lack of a pricing agreement has effectively halted progress on the deal.