Russia announced that it has signed a legally binding agreement with China to build a new cross-border gas pipeline. This is the latest step in a series of actions by the allies to strengthen their ties.

The memorandum of understanding for the construction of the Power of Siberia 2 gas pipeline was signed during Russian President Vladimir Putin's visit to China.

Although this step is progress in the long negotiations for the large-scale gas pipeline, the memorandum is not final and many details, such as pricing, remain unclear, AFP reported.

The pipeline will pass through Mongolia and will be able to deliver 50 billion cubic meters of gas per year, according to the Russian state news agency TASS.

"Today, a very important step was taken to further strengthen and develop our strategic partnership, to increase the reliability of clean energy supplies – natural gas – to China," said Alexei Miller, CEO of Gazprom.

Gazprom and China National Petroleum Corporation (CNPC) also agreed to increase supplies by 15% via the existing Power of Siberia pipeline, Russian news agency Interfax reported, citing Miller.

China and India have overtaken Europe as the largest buyers of Russian oil and gas, providing a lifeline for Putin's economy, which is burdened by military spending as a result of the ongoing war in Ukraine, now in its fourth year.

The agreement comes at a time when US President Donald Trump is threatening to impose tariffs on countries that buy Russian oil.

Trump has already imposed additional tariffs on India for purchasing Russian oil, but has so far refrained from taking similar action against China, despite having threatened to do so in the past. India has not yet indicated that it will reduce supplies from Russia.

The Kremlin says the memorandum on the construction of Power of Siberia 2 is among more than 20 agreements signed between Moscow and Beijing during Putin's four-day visit to China. | BGNES