Why China Keeps Pulling the Rug on Putin’s Pipeline

April 7, 2023/in /by Rudolf Huber

There are rumors that Russia does not make money on gas that is being sold through the Power of Siberia pipeline to China. It is supposed to be a political deal with which Putin wanted to blackmail Europeans. That has not worked as we know. But if Putin does not make money with PoS 1, what are the chances that there will ever be another pipeline? People like to forget that pipelines are not free and that distance is a factor. The Yamal fields are very, very far from China, and it’s hard to imagine that they would ever make any money for the Russians. And the Eastern Siberian fields are not that concentrated. Don’t hold your breath.

Beijing can afford to keep Moscow guessing about a gas pipeline deal. But Russia has few alternatives.

Bloomberg.com

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