Russian President Vladimir Putin and his Chinese counterpart Xi Jinping are looking to increase their gas trade exponentially with the development of three gas pipelines that will connect Russia to China. It comes as the rest of the world sever all ties with Russia after its President Vladimir Putin ordered his troops to invade Ukraine. Earlier today, the UK, EU and US united to disconnect all Russian oil and gas in a big show of force against Putin.
Speaking to the Business, Energy and Industrial Strategy Committee, Mike Bradshaw, Professor of Global Energy at the University of Warwick, said: “I would just like to point out that Russia and China have a gas pipeline – The Power of Siberia gas pipeline.
“In fact, at the beginning of February, when Putin was in Beijing for the Olympics, they signed an agreement on another pipeline from the Sakhalin Islands.
“They are now in talks for a third pipeline, the so-called Power of Siberia 2.”
These new gas deals will provide a lifeline for Putin, who is facing an economic crisis after Western powers sanctioned large parts of Russia’s economy, including targeting banks.
On Tuesday, the European Commission released plans to cut the bloc’s dependence on Russian oil and gas by two-thirds this year as Russian troops invade Ukraine.
The EU, which depends heavily on Moscow for its energy needs, has promised to end its dependence on Russian fuel “well before 2030”.
However, Mr Bradshaw noted that an increased flow of gas to Russia could have its benefits for the rest of the world.
Referring to Russia’s shift in focus towards China, he said: “So there’s this pivot, but ironically it’s not bad news if it means more pipeline going to China.
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“This transition will give the market, businesses and supply chains more time than necessary to replace Russian imports – which account for 8% of UK demand.”
During a speech at the White House, Mr Biden said: “We ban all Russian gas, oil and energy imports.
“Russian oil will no longer be accepted in US ports. We will not participate in the financing of Putin’s war.