Reuters. Russian President Vladimir Putin said on Tuesday (September 3) that Russia and Mongolia have potential of gas and energy cooperation.

 

Putin, who is conducting a two-day state visit to Mongolia, said that Russia is considering supplying Mongolian consumers with gas as part of Souyz Vostok pipeline construction. Souyz Vostok is part of the Power of Siberia 2 projectm a major pipeline connecting Russia and China.

 

Power of Siberia 2 is part of Russia’s strategy to compensate for the loss of most of its gas sales in Europe since the start of the Ukraine conflict. It is the planned successor to an existing pipeline of the same name which already supplies Russian gas to China and is due to reach its planned capacity of 38 billion cubic meters per year in 2025.

 

The new venture has long been bogged down over key issues such as the pricing of the gas. However, Putin said on the eve of his visit that preparatory work, including feasibility and engineering studies, were proceeding as scheduled.