Russian President Vladimir Putin is expected to discuss the
possibility of extending the Siberia-Pacific coast oil pipeline to
China when he meets President Hu Jintao
in Beijing next week, the Russian ambassador said yesterday.
The two leaders will also talk about bilateral trade and energy
co-operation as well as the nuclear disputes involving Iran and the
Korean Peninsula, Sergei Razov said.
The ambassador made the remarks at a joint news conference with
Assistant Foreign Minister Li Hui organized by the State Council
Information Office in Beijing.
"Corporations from both countries are conducting pragmatic
negotiations on the construction of a pipeline to carry Siberian
oil to China," Razov said.
Russia has decided to build a US$11.5 billion pipeline to be
completed by 2008 from Siberia to the Pacific coast to supply Japan
and the Republic of Korea; and is considering a branch to
China.
"I think we all agree that a big project like this requires a
full and thorough survey," Razov said. "During President Putin's
visit, the two sides will continue discussions on this matter."
Putin will be on a state visit on March 21-22.
"Given the surging demand of energy prompted by China's rapid
economic growth, Russia would like to increase energy co-operation
oil and natural gas in particular with China," Razov said.
Russia, the world's second-biggest oil exporter after Saudi
Arabia, plans to ship 15 million tons of crude an increase of 25
per cent to China by rail this year.
Russia is also studying the possibility of exporting natural gas
to China, he said, adding that energy co-operation was of "key
significance."
The two countries aim to raise bilateral trade to US$60-80
billion by 2010. Last year, trade volume reached nearly US$30
billion, up 37 per cent from the previous year, according to
Razov.
"Compared with China's trade figures with some other countries,
it may not be a very big figure, but what matters most is the
momentum of rapid growth," he said.
Analysts say Russia's export structure is imbalanced, which is
demonstrated by the year-on-year decline of electric and mechanical
products in the proportion of exports to China, which is a hurdle
to even more robust growth.
"This has caused serious concerns for the Russian side," Razov
said. "The proportion of value-added products shipped to China
should be increased."
To promote the development of their strategic partnership, the
two countries will celebrate the Year of Russia in China this year.
Putin and Hu will jointly inaugurate the event in Beijing next
week.
(China Daily March 17, 2006)