Experts interpret Mongolia’s decision as the final rejection of the contentious project, which was seen as a financial lifeline for a Russia grappling with sanctions. Losing access to the European gas market has cost Russia hundreds of billions of dollars and attempts to replace these revenues by expanding into the Chinese market have not borne fruit. Despite multiple proposals from President Putin, Beijing has consistently turned down the idea.
For Moscow, the need for new revenue and markets is urgent, but the project’s realization remains elusive. The proposed pipeline route, stretching 2,594 kilometers, would primarily traverse Mongolia, a landlocked nation. Yet, China has adamantly refused to discuss any project involving Mongolian territory for transit.
“We are entering a prolonged pause where Moscow no longer believes it can secure the desired deal from Beijing, likely postponing the project until more favorable times,” says former Mongolian National Security Council employee Munkhnaran Bayarlkhagva.
He suspects that Beijing’s reluctance could be partly due to Gazprom’s perceived intentions to unilaterally control the Mongolian segment of the pipeline.
“This would mean a sudden and prolonged increase in Moscow’s influence in Mongolia at Beijing’s expense,” Bayarlkhagva notes. “While never explicitly stated, it would have been ‘fair’ to include the Chinese in developing the Mongolian section from the start.”
Shanghai Academy of Social Sciences researcher Li Lifang adds, “Mongolia hopes for investments from both China and Russia, but Russia lacks the funds, and China is not rushing to build the pipeline.”
With Russia’s substantial fossil fuel reserves, the energy sector is a critical aspect of its economic relationship with China. In fact, China imported 75.4 million tons of natural gas in the first seven months of this year alone. Fuel trade is expected to be a significant agenda topic during Chinese Premier Li Qiang’s visit to Moscow on Tuesday.
Both parties would use this project for political leverage at any point on a whim. Neither is trustworthy.
Dictatorships are a curse on humanity.
Russia: Heyyyyyyy!
Mongolia: ….
Russia: I said …. heyyyyyyyy.
Mongolia: ….
Russia: Heyyyyy, Mongolia. Buddy. Hey.
Mongolia: ….
Russia: Bro I have been having a hell of a time, I can’t tell you how glad I am to see one friendly face these days, we’re still cool right?
Mongolia: ….
Russia: Great, awesome, I am so glad about that my broski. So we are gonna just go right ahead with that gas pipeline right? Lotta money for you, just like the old days amirite?
Mongolia: There’s not enough fermented mare’s milk in the world, you enormous dinosauric dillwad.
Russia: ….
Mongolia: ….
Russia: …. Okay… well… call if you change your mind?
I suggest Putin run the pipeline into North Korea and right into the ocean…
Mongolia rejected project on Chinas behalf looks like.
So much for “friendship without limits”…
Russia has no cash to pay for it. So my guess is Russia was insisting China pay for it while Russia would build and therefore control it. No one would ever agree to that. But Russia desperately needs to steal the money for the war effort, so that was the only option Russia could offer.
I feel bad for Mongolia, they seem like they want to be more Western than they’re allowed to be due to their landlocked status between two shitty countries. Wouldn’t be surprised if China is playing up Taiwan issue to instead march into Mongolia soon.
Why doesn’t Russia simply build the pipeline around Mongolia?
9 comments
In a significant setback for Moscow, Mongolia has definitively rejected the proposal to build the “Power of Siberia-2” gas pipeline. The Chinese newspaper South China Morning Post [has reported](https://www.scmp.com/economy/china-economy/article/3275022/future-murky-russia-china-pipeline-mongolia-omits-project-long-term-plan) that Mongolia has officially excluded the pipeline from its long-term plans extending up to 2028.
Experts interpret Mongolia’s decision as the final rejection of the contentious project, which was seen as a financial lifeline for a Russia grappling with sanctions. Losing access to the European gas market has cost Russia hundreds of billions of dollars and attempts to replace these revenues by expanding into the Chinese market have not borne fruit. Despite multiple proposals from President Putin, Beijing has consistently turned down the idea.
For Moscow, the need for new revenue and markets is urgent, but the project’s realization remains elusive. The proposed pipeline route, stretching 2,594 kilometers, would primarily traverse Mongolia, a landlocked nation. Yet, China has adamantly refused to discuss any project involving Mongolian territory for transit.
“We are entering a prolonged pause where Moscow no longer believes it can secure the desired deal from Beijing, likely postponing the project until more favorable times,” says former Mongolian National Security Council employee Munkhnaran Bayarlkhagva.
He suspects that Beijing’s reluctance could be partly due to Gazprom’s perceived intentions to unilaterally control the Mongolian segment of the pipeline.
“This would mean a sudden and prolonged increase in Moscow’s influence in Mongolia at Beijing’s expense,” Bayarlkhagva notes. “While never explicitly stated, it would have been ‘fair’ to include the Chinese in developing the Mongolian section from the start.”
Shanghai Academy of Social Sciences researcher Li Lifang adds, “Mongolia hopes for investments from both China and Russia, but Russia lacks the funds, and China is not rushing to build the pipeline.”
With Russia’s substantial fossil fuel reserves, the energy sector is a critical aspect of its economic relationship with China. In fact, China imported 75.4 million tons of natural gas in the first seven months of this year alone. Fuel trade is expected to be a significant agenda topic during Chinese Premier Li Qiang’s visit to Moscow on Tuesday.
Both parties would use this project for political leverage at any point on a whim. Neither is trustworthy.
Dictatorships are a curse on humanity.
Russia: Heyyyyyyy!
Mongolia: ….
Russia: I said …. heyyyyyyyy.
Mongolia: ….
Russia: Heyyyyy, Mongolia. Buddy. Hey.
Mongolia: ….
Russia: Bro I have been having a hell of a time, I can’t tell you how glad I am to see one friendly face these days, we’re still cool right?
Mongolia: ….
Russia: Great, awesome, I am so glad about that my broski. So we are gonna just go right ahead with that gas pipeline right? Lotta money for you, just like the old days amirite?
Mongolia: There’s not enough fermented mare’s milk in the world, you enormous dinosauric dillwad.
Russia: ….
Mongolia: ….
Russia: …. Okay… well… call if you change your mind?
I suggest Putin run the pipeline into North Korea and right into the ocean…
Mongolia rejected project on Chinas behalf looks like.
So much for “friendship without limits”…
Russia has no cash to pay for it. So my guess is Russia was insisting China pay for it while Russia would build and therefore control it. No one would ever agree to that. But Russia desperately needs to steal the money for the war effort, so that was the only option Russia could offer.
I feel bad for Mongolia, they seem like they want to be more Western than they’re allowed to be due to their landlocked status between two shitty countries. Wouldn’t be surprised if China is playing up Taiwan issue to instead march into Mongolia soon.
Why doesn’t Russia simply build the pipeline around Mongolia?