Russia, China to expand oil and gas trade

Russia and China are interested in increasing their oil and gas trade, President Vladimir Putin told reporters in Harbin on Friday. "Mutual interest in implementation of such projects has been confirmed," Putin said in the final hours of his state visit to China, as per a briefing broadcast by state-run Rossiya 24 TV.

"We have a huge common border and nothing can interfere: neither sanctions against the tanker fleet, nor sanctions against financial institutions. We will buy and sell everything in national currencies." Russia's relations with western nations, formerly its main energy market, are at the lowest point since the Cold War due to Putin's invasion of Ukraine. That makes Moscow increasingly reliant on oil and gas deliveries to growing Asian economies. China, the word's largest energy importer, is currently a key buyer of Russian barrels and Gazprom PJSC's natural gas.

Russia currently delivers gas to China through the Power of Siberia pipeline and plans to build a second supply link along the same route no later than in 2027. It has, for years, been trying to sign a third gas contract with China, which would pave the way for a third pipeline via a different route via Mongolia. If all three lines operate as planned, Russia's gas flows to China could reach nearly 100 billion cubic meters per year.