Core Points - Gazprom's board has approved an investment plan for 2026 amounting to 1.1 trillion rubles (approximately 13.53 billion USD), which is nearly one-third lower than the revised investment plan for 2025 of 1.615 trillion rubles [1][1][1] - The funding for the upcoming year will primarily focus on further developing gas production centers in Eastern Russia and the Yamal Peninsula, as well as household gas supply and the expansion of the existing "Power of Siberia 1" pipeline [1][1][1]

Core Insights - The energy cooperation between China and Russia has strengthened in recent years, particularly after the Russia-Ukraine conflict, with both countries seeking to secure energy supplies and diversify their markets [2][4][18] - The Power of Siberia 2 pipeline is a key project, originally designed to transport 50 billion cubic meters of gas annually from Russia to China, but concerns over Mongolia's reliability as a transit country have prompted both nations to explore alternative routes [2][12][18] Energy Cooperation - China and Russia have signed multiple agreements over the years, including a memorandum in 2006 to plan two pipelines: the eastern and western routes [4] - The eastern route, Power of Siberia 1, began operations in 2019 and has gradually increased its annual gas supply to 38 billion cubic meters, stabilizing China's northeastern energy supply [4] - The western route, Power of Siberia 2, has faced delays primarily due to pricing and routing issues, but Russia's loss of the European market has intensified its urgency to sell gas to China [4][12] Mongolia's Role - Mongolia's economic dependence on both China and Russia complicates its political stance, as it exported 84.3% of its goods to China in 2022 [6][10] - The political alignment of Mongolia with the U.S. since 1991 raises concerns for both China and Russia, as Mongolia has engaged in military cooperation with the U.S. and NATO [8][16] - Historical tensions between Mongolia and both China and Russia contribute to a cautious approach, with Mongolia seeking to balance its relationships [10][12] Alternative Routes and Strategies - Both China and Russia have considered alternative routes for the Power of Siberia 2 pipeline to avoid potential disruptions through Mongolia, with China advocating for a direct route through Xinjiang [12][18] - Russia has also been diversifying its energy export routes, including agreements with Kazakhstan for oil transport and partnerships with Qatar for liquefied natural gas [14][18] - The geopolitical landscape is shifting, with Mongolia's alignment with the U.S. prompting China and Russia to seek more stable energy supply routes [16][19]