10-11-06

Russian Prime Minister Mikhail Fradkov held talks with top Chinese leaders aimed at shoring up bilateral ties and pushing forward a series of large-ticket economic and trade projects.
Fradkov, on the first day of a two-day visit, met his counterpart Wen Jiabao and the two oversaw the signing of 14 economic agreements including pacts to provide Russian oil and electricity to China.

Russia, the world's second-largest export of oil, has said it plans to build a Siberian oil pipeline to the Sea of Japan that will branch off to China's northeast region.
"A strategic decision on building this pipeline, including a branch to China, has been made," Russian Deputy Prime Minister Alexander Zhukov said. "It will carry up to 80 mm tons of oil a year, of which 30 mm tons will go to China."
Russia has already agreed to build two natural gas pipelines to China.

On the electricity agreement, it was reported in October that the two sides plan to spend $ 10 bn over the next five years to build power plants along their common border to satisfy China's growing energy demand. The projected plants will have total capacity of 10 GW, according to the State Grid Corp. of China.
Fradkov is due to meet President Hu Jintao and attend a Russo-Chinese investment fair.

During talks with Chinese State Councillor Wu Yi, both sides reiterated their previous goals of $ 60 bn in bilateral trade by 2010 and realizing $ 12 bn of Chinese investment in Russia by 2020, Zhukov said.
"Record high growth rates are the most obvious matter in trade and business relations between Russia and China," he said. "The nations should be proud that bilateral trade soared 37.1 % to $ 29.1 bn in 2005."

Wen and Fradkov also signed a five-year plan for the development of bilateral trade, a pact pledging peaceful use of nuclear energy, and accords on insurance, banking, and natural gas.
Eight other trade and technical agreements with a contracted value on the Chinese side of $ 800 mm were signed at the trade and investment fair. The agreements included a car assembly factory, mining deals and other production facilities.