Russian President Vladimir Putin on Wednesday inaugurated the Kovykta natural gas field in eastern Siberia that will allow Russia to increase its exports to China amid soaring tensions between Moscow and the West.
"We are launching the unique Kovykta field, the largest in Eastern Siberia," Putin said during a televised ceremony, adding that it will "give a serious boost to the development" of Russia's eastern regions.
Through the launch of a new gas field that holds recoverable reserves of 1.8 trillion cubic meters Russia aims to shift gas exports to the east as the European Union cuts reliance on Russian energy in response to the war in Ukraine.
Putin hailed it as a "significant event" for Russia's energy industry and the whole economy. He joined a video link to workers at the site, who were shown lined up on the snow in blue protective suits and white helmets, and gave the order "Start work!" to inaugurate the project.
Russia started selling natural gas to China at the end of 2019 via the Power of Siberia pipeline, which supplied about 10 billion cubic meters (bcm) of gas in 2021 and is due to reach its full capacity of 38 bcm in 2025. Russia is now Beijing's No. 3 gas supplier.
In February, Putin reached an agreement to sell an additional 10 bcm of gas to China from Russia's Far East through a new, smaller pipeline to China's northeast.
Russia also plans to construct another major pipeline, the Power of Siberia 2, via Mongolia with a view to selling an additional 50 bcm of gas per year.
Putin said last week the projects would allow Russia to boost its gas sales to China to 48 bcm annually by 2025 and to 88 bcm by 2030.
Russia and China switched to national currencies in their natural gas trade in November, implementing a deal they signed earlier in September.
Former Russian President Dmitry Medvedev made a surprise visit to China on Wednesday for talks with President Xi Jinping, which Medvedev said had included a discussion of the "no limits" strategic partnership that the two countries announced in February.