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Update: Market Chatter: China, Russia Reach Understanding to Advance Long-Standing Gas Pipeline Plan

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(Updates with requests for comment sent to Russian and Chinese governments.)

The leaders of China and Russia have reached an understanding on a previously-discussed major gas pipeline, the Power of Siberia 2, between the two, the BBC reported on Wednesday as part of coverage of the Putin-Xi summit.

Press secretary to Russian President Vladimir Putin, Dmitry Peskov told reporters that an "understanding already exists" between Putin and his Chinese counterpart Xi Jinping on the project, BBC reported, citing Russia's state-owned Ria Novosti.

The project, which has existed on paper for years, but never been built, could transport up to 50 billion cubic meters of gas a year to China, the BBC said.

If realized, the project could be transformative for Russia which has all but lost the huge European market over its invasion of Ukraine in 2022. The EU and US have sought to curb Russia's hydrocarbon revenues funding its war on its neighbor.

Russian and Chinese authorities did not immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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