Kremlin sees little hope for China deal on Power of Siberia 2 pipeline

Talks between Russia and China on the pipeline continue “at the corporate level,” Kremlin spokesman Dmitry Peskov said, Interfax reported.

Peskov said it was too early to say whether a final agreement could be reached at the Eastern Economic Forum, scheduled for early September in Vladivostok.

“We do not have such information yet. This is a corporate process ... It is clear that discussions on this issue will continue at the corporate level. But whether it will be finalized at the forum or not, I cannot tell you now,” Peskov said when asked whether progress in talks with China on Power of Siberia 2 could be expected at the forum and whether agreements could be signed.

Peskov said the issue “was raised during Putin’s recent visit to China.”

As reported earlier, Russian dictator Vladimir Putin failed during an official visit to Beijing to persuade Chinese leader Xi Jinping to back construction of the new Power of Siberia 2 gas pipeline.

Under the Kremlin-backed project, the pipeline would supply China with up to 50 billion cubic meters of Russian gas a year.

It was also reported that Gazprom offered China highly favorable gas pricing terms for Power of Siberia 2, which is planned to run through Mongolia, but the Chinese side has shown no readiness to move quickly on the project.