The relationship between Russia and China is at its commercial peak, but its most ambitious project remains on hold. Trade grew 25.6% in the first half of 2026, while the Power of Siberia 2 gas pipeline is still stuck over a price gap. This is the state of a partnership that is less balanced than it looks.
How much Russia and China trade
| Indicator | Figure |
|---|---|
| Bilateral trade reported by Putin in September 2026 | 240 billion dollars |
| Growth in the first half of 2026 | 25.6% |
| Rise in Russian oil exports to China, first quarter of 2026 | 35% |
| Share of Russia's foreign trade payments made in yuan | More than a third |
The figures vary by source: China's Xinhua agency put 2025 trade at around 228 billion dollars. What nobody disputes is the trend, driven by energy and by Western sanctions, which pushed Russia to sell to Asia and move away from the dollar.
What Russia and China agreed at the 2026 summit
Vladimir Putin travelled to Beijing in May 2026. He and Xi Jinping signed a joint statement on their “comprehensive partnership” and more than 40 agreements on trade, education, technology and nuclear security, according to CNBC. Xi said relations are at “their highest level in history”.
Why the Russia-China pipeline is not moving
Power of Siberia 2 would carry 50 billion cubic metres of gas a year from Russia's Yamal fields to China, through Mongolia. In September 2025 the parties signed a binding memorandum, but price, financing and timing were left unresolved.
| Point in dispute | Position |
|---|---|
| Price sought by China | Close to Russia's domestic rate: 120 to 130 dollars per thousand cubic metres |
| Price sought by Russia | Similar to the first pipeline, which analysts estimate at more than double |
| Outcome of the May 2026 summit | No construction or sales agreement |
The Carnegie think tank noted that the deals Moscow wanted most were absent from the summit. At the end of September the project was still deadlocked.
Russia and China: an unequal relationship
China is Russia's largest trading partner. Russia, by contrast, accounts for about 4% of China's total trade. That gap explains why Beijing can wait for a better gas price and Moscow cannot.
Nor is it a formal military alliance. Both governments speak of a partnership, and China says it is neutral on the war in Ukraine, although it keeps trading with the Kremlin.
Part of that trade is already paid in Chinese currency. If that interests you, read what the digital yuan is. For more international context, see our news section.
Frequently asked questions
Are Russia and China allies?
They describe themselves as strategic partners. They have no mutual defence treaty.
How much do Russia and China trade?
Putin put the figure at 240 billion dollars in September 2026; other sources give somewhat lower numbers.
What is Power of Siberia 2?
A planned pipeline to carry 50 billion cubic metres of Russian gas a year to China through Mongolia.
Why is it not being built?
Because the two countries cannot agree on the price of the gas.
