Core Insights - Russia's energy export landscape has significantly changed, particularly with a drastic reduction in its market share in Europe, impacting its fiscal revenue [1] - China is strengthening its cooperation with Russia to ensure stable energy supply, providing Russia with a new market while enhancing China's position in the global energy chain [3] - Gazprom, Russia's largest energy company, reported a net loss of 1.076 trillion rubles in 2024, continuing to face losses in 2025 due to reduced demand in the European market [3] - Russia's reliance on oil and gas is highlighted by the fact that these sectors account for over 27% of GDP and 57% of total foreign trade [5] - The federal budget deficit reached 3.694 trillion rubles in the first half of 2025, with oil and gas revenues declining by 14.4% [5] - China is diversifying its energy imports, with pipeline gas imports from Russia increasing by 27% and expected to reach 38 billion cubic meters in 2025 [5] - The East Route Pipeline project has achieved its maximum gas transmission capacity, with a projected daily capacity of 38 billion cubic meters by 2025 [7] - Infrastructure bottlenecks limit Russia's energy export scale, but new projects like the Far East Pipeline and the China-Mongolia-Russia Pipeline are in development [9] - The total value of the East Route Pipeline agreement is estimated at $400 billion, with a 30-year term, while the China-Mongolia-Russia Pipeline is expected to exceed $500 billion [10] - These agreements are crucial for Russia to stabilize its fiscal situation and provide China with a reliable energy supply [12]