TASS: Russian and Chinese companies in active discussions on Power of Siberia 2, gas pipeline

According to the Russian state news agency TASS, Russia and China have reached an "active" stage of negotiations on a new proposed gas pipeline, Power of Siberia-2. The pipeline would carry Russian gas through Mongolia to China. However, they are unlikely to sign a deal in the next few days, said Energy Minister Sergei Tsivilev.

This week, Chinese President Xi Jinping will be in Moscow to celebrate the 80th anniversary since World War II's victory over Nazi Germany.

The companies are working to finalize the contract. "They are in active negotiations. I don't think they can do it before the 9th of May," he said. He was referring to the anniversary of Thursday's World War II.

Since years, Russia has sought agreement with Beijing on the construction of the Power of Siberia-2 pipeline to transport 50 billion cubic meters of natural gas per year from the Yamal Region in northern Russia through Mongolia to China.

However, to date, the parties are unable to reach an agreement on the conditions of gas delivery. Last month, the Chinese ambassador to Russia stated that the route of the pipeline was still to be determined.

(source: Reuters)