Chinese President Xi Jinping and Russian President Vladimir Putin met in Kyrgyzstan on the 31st local time for a summit. As the two countries agreed to strengthen cooperation in areas including trade, energy, and science and technology, attention is focused on whether they will reach an agreement on Power of Siberia 2, a major gas pipeline project.
According to China's state-run Xinhua News Agency and Russia's Tass news agency on the 31st, the two leaders met in Bishkek, the capital of Kyrgyzstan, in the afternoon on the sidelines of the Shanghai Cooperation Organization (SCO) summit to discuss strengthening bilateral cooperation. The meeting took place shortly after Putin arrived in Bishkek in the afternoon. It has been a little over three months since the two leaders last sat down together during Putin's state visit to China in May.
According to the reports, Xi referred to Putin's state visit to China in May and said, "We agreed to deepen cooperation between China and Russia in various fields under the new circumstances." He added that bilateral relations are continuing an active trend of exchanges and cooperation, and said the two sides would further consolidate the foundation of their ties through strategic guidance by the leaders and joint efforts.
Putin also said bilateral relations have "become a model for relations between countries," and expressed hope that the two countries will strengthen cooperation in areas such as trade, energy, industry, transportation, and science and technology, while continuing high-level exchanges. Putin then proposed making the visa-free regime between the two countries permanent. He said the visa-free system helped increase the flow of tourists between the two countries by 43% in the first half of this year, adding, "If the Chinese side considers it feasible and beneficial, we are ready to work together to make the visa-free regime permanent."
Dmitry Peskov, the Kremlin Spokesperson, said the two leaders briefly exchanged views on international issues but added that "the international situation was not the main agenda item." He continued, "The Ukraine situation was mentioned in passing, but there were no substantive discussions."
◇ Spotlight on a Power of Siberia agreement… "China-Russia balance tilts toward China"
According to Russian media citing Kremlin aide Yury Ushakov, Power of Siberia 2, a major gas pipeline project between the two countries, also appears to have been discussed at the summit.
Power of Siberia 2 is a pipeline construction project to transport natural gas from Russia's Yamal Peninsula through Mongolia to China. Russia and China have discussed supplying West Siberian gas to China since 2006, and the current route through Mongolia took shape starting in 2019. The goal is to export up to 50 billion㎥ of Russian natural gas to China annually. The two countries discussed the matter during Putin's visit to China in May, but are reported to have failed to reach an agreement as they could not narrow differences on details such as the supply price.
The Wall Street Journal (WSJ) reported that "China is seeking to secure Russian energy on the most favorable terms by taking advantage of Russia's narrowed sales channels due to Western sanctions," adding that "it is demanding prices as low as Russia's domestic market level." It continued, "Russia is in a situation where it must concede on price in exchange for relying on the vast Chinese market."
WSJ also analyzed that the balance in China-Russia relations is shifting toward China. As the war in Ukraine drags on, Russia's economic dependence on China is growing. China, meanwhile, is reaping economic benefits by securing cheap Russian oil and entering Russia's domestic market vacated by Western companies. WSJ said, "With Russia becoming more dependent on China, Putin has effectively come to accept the role of a 'junior partner' in relations with China."
Meanwhile, Xi arrived in Bishkek the previous day to attend the Shanghai Cooperation Organization (SCO) summit and for a state visit to Kyrgyzstan. The SCO summit is a consultative body formed in 2001 by China and Russia with the four Central Asian countries of Kazakhstan, Uzbekistan, Tajikistan, and Kyrgyzstan. India, Pakistan, Iran, and Belarus later joined, bringing the current membership to 10.