Russia will increase the discount for natural gas it supplies to China via the “Power of Siberia“ pipeline to 56 percent. In 2026, the average price for the Chinese market will be $247.9 per 1,000 cubic meters, while the rest of “Gazprom“ customers will pay $562. abroad will pay an average of $562 for the same amount.
This difference reaches $315 per 1,000 cubic meters. The data is included in the materials for the Russian budget for 2027, published in the State Duma database, and is quoted by The Moscow Times.
The discount is greater compared to 2025.
In 2025, China bought Russian gas for $240.3 per 1,000 cubic meters, while the price for other foreign customers of “Gazprom“ was $406.5. According to the published budget estimates, this means that the discount for Beijing increases by 15 percent on an annual basis.
Deliveries under the “Power of Siberia“ reached 39.4 billion cubic meters in 2025. For 2026, the volume is expected to grow to 40.5 billion cubic meters. However, the Chinese market covers only about a fifth of the quantities that Russia exported to the European Union in the strongest years - nearly 200 billion cubic meters.
Moscow plans to gradually reduce the gap
Russia expects to continue selling gas to China at a significantly lower price in the coming years. For 2027, a price of $251.3 per 1,000 cubic meters has been set, compared to $450 for other foreign destinations, which corresponds to a discount of 46 percent.
For 2028, the forecast is for a price of $247.8 for China versus $361.9 for other markets, or a difference of 32 percent. In 2029, 246.4 and 323.2 dollars are expected, respectively, which would reduce the discount to 24 percent.
China wants an even lower price
According to data cited by The Moscow Times, Russian gas is being sold to China on less favorable terms for “Gazprom“ not only compared to the former European market, but also compared to Turkmen supplies. China pays $40-60 more for 1,000 cubic meters of Turkmen gas, even though it travels along a 1,800-kilometer route through Uzbekistan and Kazakhstan.
“Turkmen gas enters the far west of China, while Russian gas crosses the border in the northeast, from where the distance to Beijing is half as short“, says Sergei Vakulenko.Negotiations on a new gas pipeline between Russia and China remain blocked over price. China is pushing for a tariff of between $50 and $150 per 1,000 cubic meters, close to domestic Russian prices for households or industry. Moscow, for its part, wants to keep the current formula, which already includes a significant discount.
Sources: epravda.com.ua, ru.themoscowtimes.com