Work on a new oil pipeline from Russia to China will begin in the near future, Russian Foreign Minister Sergei Lavrov said in Beijing yesterday.

 

Addressing a press conference on the 'Year of Russia' in China, Lavrov said the two countries will conduct a technical feasibility study on the pipeline, which will be a branch of the East Siberia-Pacific pipeline.

 

Russian natural gas company Gazprom signed an agreement with China National Petroleum Corporation (CNPC) yesterday on the joint designing and construction of the oil pipeline from Russia's Skovorodino to the border of the two countries, and a memorandum of understanding on the construction of two pipelines that will allow Russia to supply 30-40 billion cubic meters of natural gas to China annually.

 

Ravrov said Russia's oil exports to China will increase sharply after the oil pipeline is put into use.

 

Russia's oil exports to China have been steadily rising in recent years. It plans to sell 15 million tons of crude oil to China via railway shipments in 2006.

 

On whether high oil prices in the international market will affect bilateral energy cooperation, Ravrov said both countries will stick to market rules, including the signing of risk contracts.

 

Ravrov describes 2006 a critical year in bilateral energy cooperation.

 

Russian and Chinese companies may also jointly develop Russia's oil and gas resources, he said.

 

Ravrov said both countries expressed their interests in expanding their cooperation in nuclear energy, and that Russia will be actively involved in the building nuclear power stations in China.

 

He said Russia's new draft law on mineral resources will not be an obstacle to Chinese investment in Russia's energy sector, as it only restricts foreign participation in the development of a few strategic rare minerals.

 

Lavrov also highly praised Russian President Vladimir Putin's China visit, noting that the strategic partnership of cooperation between Russia and China is "irreversible."

 

He said Putin's visit has achieved "comprehensive" results and added "new" and "concrete" content to the strategic partnership between the two countries.

 

Russia and China signed a series of cooperation agreements and made a plan for implementing the cooperation projects during Putin's visit, Lavrov said.

 

In addition to the 15 agreements signed Tuesday, seven other agreements have been signed, which were not included in the plan for the signing ceremonies attended by the two state heads, he said.

 

Lavrov said in addition to this visit, leaders of the two countries will meet on many other occasions, including the Shanghai Cooperation Organization (SCO), the Asia-Pacific Economic Cooperation (APEC) and the G8 summit.

 

On the bilateral economic cooperation and trade, he said they have been mutually complementary and have become the basis for the development of bilateral relations.

 

Besides energy cooperation, the two sides will continue to strengthen and expand cooperation in fields of civil aviation, space exploitation, agriculture, anti-terrorism and labor services, Lavrov said.

 

He spoke highly of bilateral cooperation in international affairs, saying both countries share the same position on most international issues and have worked together and coordinated with each other to solve problems in the international community.

 

At the invitation of President Hu Jintao, Putin paid a state visit to China that started March 21. During his stay in Beijing, he attended the opening ceremony of the 'Year of Russia' and a high-level China-Russia economic forum.

 

The series of economic cooperation activities, which also include a 'Russia Business Week', are believed to help promote the development of bilateral economic and trade relations.

 

China key role in Russia's oil strategy: oil tycoon

 

China is a long-term strategic partner for Russia's energy sector and plays an important role in Russia's Asian oil strategy, Russian oil tycoon Sergei Bogdanchikov said in Beijing yesterday.

 

In an interview with Xinhua News Agency, the president of the Russian oil company Rosneft said by the end of the year, Russia and China will set up a joint venture in each country that will engage in the exploration, production and processing of crude oil and oil products in Russia, and the sale of such products in China and other countries.

 

Asian and Pacific countries, particularly China, could be the major markets for oil from Russia's Siberia and Far East regions, he said, adding that Rosneft will set up an Asian office in Beijing.

 

Rosneft has signed a strategic cooperation agreement with the China Development Bank that provides financing for increased oil exports from Russia to China. Rosneft and the bank will also jointly finance the development of two oil and gas fields.

 

Bogdanchikov said Rosneft plans to increase its export of crude oil and oil products to China from 7.1 million tons in 2005 to 12.7 million tons this year.

 

(Xinhua News Agency March 23, 2006)