Russia Turns to China as Europe Rejects Gas Amid Ukraine Conflict
Russia's energy exports are shifting towards China as European countries reduce their purchases of Russian gas following the Ukraine conflict. Deputy Prime Minister Alexander Novak predicts that by 2030, Chinese buyers will account for more than half of Russia's total gas exports.
In four years, Novak expects Chinese imports to exceed 60% of Russia's gas exports, making China the largest importer of Russian fuel. This increased dependence on China is likely due to the loss of Europe as a key energy market.
The European Union has planned to completely eliminate its dependence on Russian energy resources by October 2027, banning liquefied natural gas (LNG) and pipeline gas from September 30. Russia's domestic exporters are turning to China, but it will be challenging to significantly increase fuel supplies in this direction.
China has an extensive supplier network and does not need large volumes of Russian gas. The key joint project, the Power of Siberia-2 pipeline, is still under discussion, and China insists on lowering the price to the domestic Russian level, while Gazprom expects a higher cost.