China has disconnected from Russia: It has become unprofitable to buy electricity

In the new year, China stopped importing electricity from Russia, as the export price exceeded the domestic prices in China.

"Since January 1, China has completely stopped importing electricity from the Russian Federation, refusing even to purchase the minimum contract volumes (about 12 MW)," Kommersant reports, citing sources.

They told the publication that in 2026, electricity exports to China is unlikely to resume.

"The main reason is that the export price of the supply has exceeded domestic electricity prices in China since January, which made further purchases unprofitable for Beijing," Kommersant continues.

The contract for the supply of electricity to China was signed in 2012 and it is valid until 2037. Inter RAO exported surplus electricity from the Far East. The price formula is unknown, but it may depend on the prices in Russia.

The publication notes that due to the ongoing liberalization of the market, prices in the Far East have been growing at a faster pace since the beginning of 2026: the single-quote price for electricity in the Far Eastern Federal District by the end of the month may be about 4.3 thousand rubles per 1 MWh. At the same time, the price of electricity in China remains almost unchanged and is about 350 yuan (about 3.9 thousand rubles) per 1 MWh.

"Currently, the parties are actively exploring opportunities for electricity trading. The termination of the export contract on the initiative of the Russian side is not planned. The Chinese side, with whom we are in constant interaction, also does not express interest in terminating the contract," Inter RAO said.

According to him, energy consumption is growing at a faster pace in the Far East and there is a shortage of generation, which has led to a decrease in export opportunities and limited supplies to China.

Export of electricity from Russia's access to China can be resumed upon receipt of a corresponding request from China and the achievement of mutually beneficial terms of cooperation, the Russian Ministry of Energy has already reported.