Russia and China have signed nearly three dozen new agreements spanning energy, trade, and technology during Chinese President Xi Jinping’s visit to Moscow for Victory Day events.

Energy deals anchor the partnership

The most closely watched discussions involved Chinese participation in Russian liquefied natural gas projects, including the Ust-Luga facility. For Russia, getting Chinese capital and technology into its LNG sector is increasingly critical as Western sanctions have choked off access to the equipment and financing that previously underpinned these megaprojects.

The Power of Siberia 2 pipeline would deliver Russian gas to China through Mongolia, but key commercial terms remain unresolved, including price, volume, duration, and take-or-pay commitments. China has indicated a desired gas price of $120 to $150 per 1,000 cubic meters. Russia needs this pipeline far more than China does, and Beijing knows it.

Financial plumbing gets an upgrade

By May, 30 Russian banks had connected to China’s Cross-Border Interbank Payment System, known as CIPS, the Chinese alternative to SWIFT. After Russia’s invasion of Ukraine, several major Russian banks were cut off from SWIFT, effectively severing them from the global dollar-based financial system. CIPS enables yuan-based settlements that bypass Western infrastructure entirely, meaning Russian companies can pay for Chinese imports and Chinese firms can pay for Russian energy without converting through dollars or euros.