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Bloomberg hails Power of Siberia 2 agreement as diplomatic victory for Putin

According to the news agency, progress on Power of Siberia 2 sets a new standard for strategic relations between Russia and China

NEW YORK, September 2. /TASS/. Russian President Vladimir Putin scored a diplomatic victory by concluding an agreement on the construction of the Power of Siberia 2 gas pipeline to supply Russian gas to China at the Shanghai Cooperation Organization (SCO) summit, Bloomberg wrote.

Russia achieved a diplomatic success with a massive deal that will strengthen the ties between Moscow and Beijing for decades to come and could reshape global gas trade, the US agency said. Progress on Power of Siberia 2 sets a new standard for strategic relations between Russia and China. Such energy infrastructure is mutually beneficial for the economies of both countries and promotes the growth of bilateral trade, the agency wrote.

Gazprom chief executive Alexey Miller announced earlier the signing of a legally binding memorandum with China on the construction of the Power of Siberia 2 gas pipeline and the Soyuz Vostok transit gas pipeline through Mongolia. Moreover, Gazprom and the China National Petroleum Corporation (CNPC) reached an agreement to increase supplies via the existing Power of Siberia gas pipeline from 38 bln cubic meters of gas per year to 44 bln cubic meters. According to Miller, the new Power of Siberia 2 gas pipeline is going to become the largest and most capital-intensive gas industry project in the world.