Moscow and Beijing Strengthen Energy Ties Amid Western Sanctions
Russia and China have signed a new, long-term energy partnership aimed at expanding trade in oil, natural gas, and other energy resources. The deal, finalized in Moscow on October 14, 2025, marks another step in deepening economic and political ties between the two nations as they seek to counterbalance the impact of Western sanctions and reduce dependence on Western markets.
| Category | Details |
|---|---|
| Date Signed | October 14, 2025 |
| Location | Moscow, Russia |
| Signed By | Nikolai Shulginov (Russian Energy Minister) and Zhang Jianhua (Chief, China’s National Energy Administration) |
| Witnessed By | President Vladimir Putin and President Xi Jinping |
| Main Objective | Expand oil and gas trade; strengthen energy cooperation between Russia and China |
| Trade Increase | +15% projected increase in Russian oil and gas exports to China by 2026 |
| Investment Areas | Pipelines, LNG terminals, renewable energy, and nuclear power |
| Currency Used | Russian ruble (₽) and Chinese yuan (¥) instead of the U.S. dollar |
| Major Projects | Power of Siberia and Power of Siberia-2 pipelines |
| Global Impact | Strengthens Asia’s energy network, reduces Western influence, and supports de-dollarization |
Key Details of the Agreement
Under the new agreement:
- Russia will increase oil and natural gas exports to China by an estimated 15% in 2026.
- China’s state energy firms will invest in new Russian energy infrastructure projects, including pipelines and LNG terminals.
- Both countries will conduct transactions in their national currencies (ruble and yuan) instead of the U.S. dollar.
- The deal includes cooperation on renewable energy development and nuclear power technologies.
The agreement was signed by Russian Energy Minister Nikolai Shulginov and Chinese National Energy Administration Chief Zhang Jianhua during a bilateral meeting attended by President Vladimir Putin and President Xi Jinping.
Background and Context
Since Russia’s full-scale invasion of Ukraine in 2022, Moscow has faced severe economic sanctions from the United States and the European Union, particularly targeting its energy exports. As a result, Russia has increasingly shifted its trade eastward — with China emerging as its largest energy customer.
In 2024, China imported over 110 million tonnes of Russian crude oil, a 25% increase from the previous year, making Russia its top supplier. Gas exports through the Power of Siberia pipeline also reached record levels, with plans underway for a second major pipeline, Power of Siberia-2, that could further boost deliveries.
Strategic and Economic Implications
The new deal solidifies the energy corridor between Russia and China, strengthening both nations’ strategic leverage:
- For Russia: It provides a stable and growing market for its energy exports amid Western isolation.
- For China: It ensures long-term energy security at discounted prices, supporting its rapidly growing industrial base.
- For global markets: The agreement could reshape global energy flows, reducing Europe’s reliance on Russian energy and deepening the divide between Western and Eastern economic blocs.
Experts say the move represents a major milestone in the ongoing “de-dollarization” trend, where countries seek to reduce dependency on the U.S. dollar in international trade.
Looking Ahead
Both sides plan to expand cooperation beyond energy, including transportation, technology, and finance. A joint commission is expected to meet in early 2026 to review progress and explore new investment opportunities.
While the West continues to impose sanctions on Russia, this partnership signals a clear message: Moscow and Beijing are forging a long-term economic alliance designed to resist Western pressure and reshape the global energy order.
In summary:
The Russia–China energy deal strengthens both nations’ economic resilience and shifts the global energy balance toward Asia, marking a pivotal moment in the evolving geopolitical landscape.