Xi and Putin Strike Numerous Deals; One Key Agreement Remains Elusive

Focus on Energy Cooperation

Putin highlighted the energy sector as a key driver of economic ties between the two nations. He emphasized Russia’s role as a reliable supplier amidst the Middle Eastern crisis, while China continues to be a responsible consumer. This comment also hinted at the ongoing conflicts involving the USA and Israel against Iran and the blockade of the crucial Hormuz Strait for oil trade.

Xi, according to Chinese state media, stressed the need for an immediate cessation of hostilities in the Middle East, suggesting that peace would stabilize energy supplies and the global industrial and trading systems.

Russia’s Economic Dependence on China

It’s well acknowledged that Russia’s economy is significantly more reliant on China than vice versa. Post-western sanctions due to the Ukraine conflict, China has become a vital economic ally for Russia, being the largest global consumer of Russian fossil fuels.

Muted Remarks on Ukraine

The joint statement on the summit outcomes contained only reserved comments about Russia’s aggression in Ukraine. It mentioned support for efforts contributing to long-lasting peace, negotiated through dialogue. There was no call from China for an end to the Russian offensive.

Instead, Russia praised China’s “objective and unbiased stance” on the conflict, reiterating a common Russian narrative about addressing the “root causes” of the Ukrainian crisis, including Kyiv’s aspiration for NATO membership.

No Agreement on Planned Pipeline

Regarding the “Power of Siberia 2” gas pipeline project, while there has been progress, no final agreement was reached. Kremlin spokesperson Dmitri Peskov mentioned a “basic understanding” about the route and construction methods, but a clear timeline remains undefined.

This pipeline, extending approximately 2600 kilometers from the Yamal Peninsula through Mongolia to China, is expected to transport 50 billion cubic meters of gas annually. Despite its potential to replace European gas supplies, Beijing has shown hesitance, contrasting with the operational “Power of Siberia” pipeline since 2019.