Gazprom CEO Alexei Miller has said the gas price for China should be “objectively lower” than for Europe because deliveries to China are shorter.
This year, Russia is selling gas to China at a discount of nearly 40%, The Moscow Times reported, citing data from Russia’s Ministry of Economic Development.
In the ministry’s base forecast, the average price of Russian gas for deliveries to non-CIS destinations excluding China—namely Turkey and European countries that remain for now—is projected at $356.7 per 1,000 cubic meters in 2026–2028. For China, the average forecast over the next three years is $243.6, or 31.7% lower than for the European direction.
“The outlook for the current year is even worse: the difference will be 38.1% ($248.7 versus $401.9 per 1,000 cubic meters). For comparison: in 2024, gas to China was sold 29% cheaper than to Europe and Turkey,” the report says.
Earlier, Gazprom CEO Alexei Miller said the price for China should be “objectively lower” than for Europe because delivering it to China is closer.
“Objective or not, Moscow has no way to compensate for the financial losses from the break with Europe,” the outlet writes.
In the coming years, Russia is set to lose even the remaining gas shipments to Europe. The European Commission has presented a plan to fully phase out Russian energy by the end of 2027. The EU still buys oil in Hungary and Slovakia, which are also the main recipients of pipeline gas; LNG purchases also continue. But under pressure from Donald Trump, the Commission said it intends to bring the oil deadline forward by a year.
Hungary refuses to halt purchases, but Bulgaria’s prime minister and energy minister said that if a decision is made to stop gas supplies to the EU, Sofia will halt transit. The last operating pipeline carrying Russian gas to Europe runs through Bulgarian territory.
To partially offset the loss of the European market, Gazprom, during a visit by a Russian delegation led by Vladimir Putin to China a month ago, agreed to boost supplies via Power of Siberia and the Far Eastern route (expected to start operating in 2027) from a total of 48 billion to 56 billion cubic meters.
Miller also said a memorandum was supposedly signed that legally commits to building the Power of Siberia-2 pipeline and the Soyuz Vostok transit pipeline through Mongolia. The Chinese side has not confirmed this. Miller also did not provide details on construction terms or supply conditions. As for pricing, he said: “We will report separately on commercial matters.”
