Sino-Russian deal to stabilise global petroleum market

Beijing, March 22 | Updated: Mar 23 2006, 05:30am hrs
A day after signing three key bilateral energy agreements with Russia, Chinese president Hu Jintao on Wednesday said that closer Sino-Russian cooperation in the hydrocarbon sector could stabilise the world petroleum market.

Cooperation in the field of energy and natural resources between Russia and China has great potential and enjoys broad prospects, Mr Hu said addressing a high-level Sino-Russian economic forum also attended by visiting Russian President Vladimir Putin.

Mr Hu urged the two sides to proceed keeping long-term perspectives in mind and heed the others interests when carrying out energy cooperation.

Such mutually beneficial cooperation should boost economic development of both countries while maintaining stability in the international market, he said.

Mr Hu also urged the two sides to shift cooperation pattern from the current trade-centred mode to one focussing on production and processing.

Speaking on the occasion, Mr Putin said oil and gas enterprises of the two countries have agreed to study the possibility of building a branch pipeline from Russias oil-rich Siberia to China.With the implementation of the project, the crude oil supply to China will definitely see an increase, he said.

China and Russia on Tuesday inked three deals on oil and natural gas cooperation following the talks between Mr Hu and Mr Putin.

The three documents include a principled agreement between China national petroleum corporation (CNPC) and Russian oil company Rosneft for forming joint ventures on oil cooperation.A memorandum of understanding between CNPC and Russias natural gas company Gazprom for natural gas supply to China and a summary of negotiations between CNPC and Transneft, a pipeline transport company of Russia were also signed.

Strategic partnership between China and Russia has helped the two countries boost their trade to new level and expand their cooperation in energy, science, technology, telecommunications, finance and transportation.

Chinese customs figures show that trade volume between China and Russia in 2005 reached $29.1 billion, up 37.1% year on year, which was 14 percentage points higher than the growth rate of Chinas total foreign trade.