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Hopes high for oil deal during Putin visit

(AFP)
Updated: 2006-03-19 20:02

Russian Ambassador to China, Sergei Razov, who was at the joint press conference with Chinese officials on Thursday, declined to specify whether a pipeline deal would be signed.

He cautioned time was needed to determine the specifics of the project, but also expressed hope for energy deals to be clinched.

Assistant Chinese foreign minister Li Hui told reporters the two sides would issue an important joint communique and several agreements would be signed, but he did not provide details.

Russia's Itar-Tass news agency said Russian gas giant Gazprom would ink an agreement with China National Petroleum Corporation (CNPC) during the visit, which will finalize a price policy for Russia's gas exports to China.

Shifting the structure of trade, which is currently focused on oil and weapons exports from Russia, is also expected to be discussed.

Razov said Moscow would like to see trade expanded from merely supplying natural resources to production and investment, especially in the fields of timber processing, aquaculture, natural gas, service and tourism.

Bilateral trade reached nearly 30 billion dollars last year, a 37.1-percent increase from 2004, but Razov said the rise had much to do with the higher costs of natural resource exports from Russia, such as oil.

The Iran and North Korea nuclear standoffs will also be discussed, the two countries said.

China and Russia, both permanent members of the UN Security Council with veto-wielding powers, are important players in both crises.

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