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Russian Officials Bullish of Power of Siberia 2 Deal Despite FT Reports

NATGAS

There is no doubt Russia will sign a deal with China for the Power of Siberia 2 pipeline according to Kremlin spokesman Dmitry Peskov on Monday following FT reports the deal was stalled over China price demands.

  • He claimed talks on the project were ongoing while details were not open for the wider public.
  • The FT reported that China would only commit to a deal for a small fraction of the 50bcm of annual capacity and is looking for prices close to Russia's heavily subsidised domestic levels.
  • China holds strong bargaining power due to the lack of other options Russia has to sell those sorts of volumes having lost the European market after the Nord Stream pipeline explosion.
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