Putin arrives in Mongolia, key link in planned gas pipeline to China

MOSCOW (Reuters) - The Kremlin said on Monday that Russian President Vladimir Putin had arrived for a state visit in Mongolia, which lies on the route of a planned new gas pipeline connecting Russia and China.

Russia has been in talks for years about building the pipeline to carry 50 billion cubic metres (bcm) of natural gas a year from its Yamal region to China via Mongolia.

The project, Power of Siberia 2, is part of Russia's strategy to compensate for the loss of most of its gas sales in Europe since the start of the Ukraine war. It is the planned successor to an existing pipeline of the same name which already supplies Russian gas to China and is due to reach its planned capacity of 38 bcm per year in 2025.

The new venture has long been bogged down over key issues such as the pricing of the gas. However, Putin said on the eve of his visit that preparatory work, including feasibility and engineering studies, were proceeding as scheduled.

He is due to hold talks with Mongolian President Ukhnaagiin Khurelsukh on Tuesday.

Ukraine urged Mongolia last week to arrest Putin on a warrant issued by the International Criminal Court warrant last year, when it accused him of the war crime of illegally deporting hundreds of children from Ukraine.

The Kremlin has dismissed the accusation, saying it is politically motivated, and has said it has no worries about Putin making the trip.

The warrant obliges the court's 124 member states, including Mongolia, to arrest Putin and transfer him to The Hague for trial if he sets foot on their territory.

Asked whether there had been discussions with Mongolian authorities about the ICC warrant, Kremlin spokesman Dmitry Peskov said last week that "all of the aspects of the visit have been thoroughly discussed."

(Reporting by Reuters, writing by Mark Trevelyan; Editing by Andrew Osborn)