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 on Thursday.
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 yesterday signed a joint statement of their 10th annual meeting and witnessed the signing of eight agreements in various fields such as banking, the state media reported.
Before the pipeline is completed, Russia will export oil to China by train, which Fradkov said will reach more than eight million tonnes 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 billion 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.
