Gazprom’s gas exports outside the former Soviet bloc fell 45.5 percent in 2022, according to results announced on Monday, following a year marked by a sharp drop in supplies to Europe following Western sanctions against an offensive in Ukraine, AFP reported.

A statement from Gazprom’s chairman, Alexei Miller, said the group exported 100.9 billion cubic meters of gas in 2022 to countries “far abroad,” a term that does not include former Soviet republics.

By 2021, Gazprom exported 185.1 billion cubic meters to the same countries.

After the West imposed economic sanctions against Russia in response to its military intervention in Ukraine, Moscow sharply cut hydrocarbon exports to the EU.

In early December, the European Union, G7 countries and Australia also agreed to cap the export price of Russian oil at $60 a barrel, hoping to deprive Moscow of crucial revenues.

In response, Russia announced that starting February 1, it will ban the sale of its oil to foreign countries using an oil cap.

To compensate for the losses, Moscow is trying to increase gas supplies to China’s energy-intensive economy and has accelerated this move.

At the end of December, Vladimir Putin began the development of a huge field in Siberia, which should allow to increase exports to China.

Russia also plans to build the Power of Siberia-2 pipeline from 2024 to supply Beijing via Mongolia.

On Monday, Gazprom’s general director stated that “prospects for the growth of gas consumption in the world are mainly related to Asia and, above all, to China.” Miller said that in 2022, deliveries to Beijing exceeded the contracted volumes “at the request of China”.

In addition to the Power of Siberia-1 gas pipeline, Gazprom plans to increase supplies from the Far East through the future Power of Siberia-2 gas pipeline.

According to Oleksii Miller, these three export routes should allow “to deliver about 100 billion cubic meters” of Russian gas to China.

What is currently known about the “Power of Siberia 2” project.

Mongolian Prime Minister Oyun-Erdene Luvsannamsray said in an interview with the Financial Times in mid-July that Mongolia expects Russia to begin work on the Power of Siberia 2 gas pipeline through its territory in the next two years.

“The feasibility study of this project has already been completed, and we believe that construction work will begin in 2024,” Luvsannamsrai said.

Preparations for the construction of the Power of Siberia 2 gas pipeline were announced back in 2014.

After several rejected options, the decision was made to lay the pipeline through Mongolia, as it allows for a shorter pipeline length and therefore lower construction costs.

The Power of Siberia 2 pipeline is estimated to be approximately 2,600 kilometers long, and its final route through Mongolia is still under discussion.