by Anil K. Joseph in Beijing
04-11-05
Russian Prime Minister Mikhail Fradkov has vowed
to enhance energy co-operation with China and has assured his counterpart Wen
Jiabao that the construction of a key cross-border crude oil pipeline will go
ahead as per an earlier agreement.
The commitment was made during discussions between Fradkov and Wen at the 10th
Sino-Russian Prime Ministers' Meeting held in Beijing.
Chinese and Russian companies are conducting a feasibility study on the oil
pipeline linking Angarsk, in Russia's Siberia, and Daqing in Northeast China's
Heilongjiang Province, Fradkov said. A deal on the construction of the pipeline,
which will pump oil from Siberia and the Russian Far East to China, was signed
in 2001. Russia had earlier dithered to implement the agreement amid
counter-lobbying by Japan.
The two leaders signed a joint statement of their 10th annual meeting and
witnessed the signing of eight agreements in various fields such as banking.
Before the pipeline is completed, Russia will export oil to China by train,
which Fradkov said will reach more than eight mm tons this year. The figure is
expected to double next year.
The two countries have reached agreements on expanding co-operation to petroleum
and natural gas, including providing China with crude and refined oil at
reciprocal prices, building a natural gas pipeline network in China,
establishing a power grid in China, and jointly developing gas and oil in both
countries.
The two leaders also reviewed the progress made on the Sino-Russian
Good-Neighbourly Treaty of Friendship and Co-operation, which was signed last
year. The meeting reviewed the results of the annual efforts and outlined
measures for furthering the partnership and strategic co-operation.
"The high-level exchange between the two countries have promoted political
mutual trust," Wen said.
The two countries launched the strategic security consultation mechanism,
approved the supplementary agreement on the Sino-Russia eastern border, issued
the China-Russia Joint Declaration on the World Order in the 21st Century, held
a joint military exercise and witnessed fast growth of trade and economic ties,
he noted. Bilateral trade volume is expected to exceed $ 28 bn this year, he
said, but added that there was much room for an increased figure.
A senior economist with the State Information Centre, Niu Li said the
Sino-Russia partnership in the energy sector was on the fast track.
"With governments participating, political risks for energy firms will be
greatly reduced," Niu said.
The huge market potential in China, the world's second-largest energy
consumer after the United States, is another driver for Russia to strengthen
ties with China on the oil and gas front, he said. But he said there are some
obstacles in energy collaboration between the two nations.
"Russia is eyeing the whole Far East region, which also includes energy-thirsty
Japan and South Korea," Niu said.
Source: PTI