Ukraine's Foreign Intelligence Service reported the information.For almost 20 years, Russia has been trying to secure China’s agreement on a new pipeline that could replace about one-fifth of Gazprom’s lost exports to Europe. The two sides signed a memorandum of intent in Beijing, but intelligence reports note that no gas supply contract has been concluded.“The 2,600 km pipeline project will have to be financed by Gazprom itself, since Beijing refused to invest. The final price is also not agreed. China insists on domestic Russian tariff levels of $120–130 per thousand cubic meters, while Moscow is offering $265–285 — similar to Power of Siberia-1,” the Foreign Intelligence Service said.Construction is estimated at $25 billion and will significantly increase financial pressure on the company, which in effect subsidizes Chinese consumers, the intelligence service emphasizes.Gazprom’s gas business remains loss-making: losses amounted to $11.6 billion in 2024 and a further $134 million in the first half of 2025.The intelligence service added that the company’s cash reserves have been shrinking for the third consecutive year — from $33 billion at the start of 2022 to $6.7 billion in June 2025. After the news about the signing of the memorandum, Gazprom’s shares fell sharply and its market capitalization decreased by $1.24 billion.Gazprom said on Tuesday, September 2, that Russia had signed an agreement to build a new large-scale pipeline to China, but the project’s price is currently unclear.