Central Asia: The Power of Siberia 2 natural gas pipeline project from Russia to China via Mongolia has been suspended.

Central Asia (CA) – Mongolia has excluded the Power of Siberia 2 gas pipeline project, which involves laying a pipeline through its territory to transport natural gas from Russia to China, from its national development plan until 2028. This is reported by Chinese media South China Morning Post After August 19th.

The publication noted that the decision was widely seen as a delay of a project that could help Moscow cope with financial difficulties amid sanctions and the ongoing war in Ukraine.

The project involves the construction of a 2,594-kilometer natural gas pipeline, a large portion of which will pass through Mongolia, which requires Mongolia’s participation in construction and transit fee negotiations.

Mongolia’s government announced its national development plan on Friday, which is being formed by a “national unity” coalition that includes three parties that hold 118 of the 126 seats in the country’s parliament, the State Great Khural, after elections in June.

The publication cited analysts as saying the suspension of the project was due to price differences between Beijing and Moscow and geopolitical factors, including the possibility of secondary sanctions by Western countries targeting those who support Russia’s military action in Ukraine.

“We are entering a long pause because Moscow is no longer confident that it can reach the deal it wants with Beijing and will likely delay the project until the situation improves,” Monknalan Bayarkhageva, a former official with Mongolia’s National Security Council, said in an interview with the publication.