Negotiations between Russia and China over the Power of Siberia 2 (POS 2) pipeline, which would further link the countries, have shown no signs of gaining traction. 

Although Moscow is eager to close the deal, disagreements over pricing, tariffs, taxes, financing and the pipeline route may make it difficult for the project to meet its slated 2030 start-up. 

Russia has turned to the Far East, particularly China, to reroute its piped gas after Europe found alternative sources when Gazprom PJSC cut off pipeline exports in 2022. Since Russia invaded Ukraine early that year, Russia’s share of Europe’s gas imports dropped to 8% last year from more than 40% in 2021, based on European Union (EU) data.

Russia is counting on the 2,200 mile, POS 2 pipeline, and has reportedly...