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CHINA / National

Hu, Putin call for closer oil cooperation
(AP)
Updated: 2006-03-22 12:42

Russia's Cabinet in 2003 decided against a pipeline going directly into China - as Beijing sought - planning instead on a route to its own Pacific coast. But Moscow has signaled its intention to build a branch into China.

Putin gave no details or timetable for that project during his visit to Beijing, but pledged his country's commitment to the plan.


President Hu Jintao and his Russian counterpart Vladimir Putin attend the opening ceremony of the Year of Russia at the Great Hall of the People, March 21. The year-long festival, which features more than 200 cultural, economic and educational events, was agreed upon by the two countries in 2004. [Newsphoto]

"If this project is successfully completed - and that is beyond doubt - it will provide for significant increase in the volume of oil supplies from Russia to China," Putin said at the business forum.

The Russian energy minister said Moscow and China would conduct a feasibility study and that a construction timetable could not be proposed until the study is done on the route.

The pipeline would go south from a point in Russia's Amur region to the Chinese oil center of Daqing, the minister said.

The chief executive of Russia's state-run pipeline monopoly Transneft said CNPC will pay his company US$400 million (euro330 million) to build the branch line to China, according to the Russian news agency Interfax.

"This project has long been discussed and I repeat that this year, in the very near future, it will begin to be realized," said Russian Foreign Minister Sergey Lavrov said.

The chief executive of OAO Rosneft, Sergei Bogdanchikov, said it will launch ventures this year with state-owned CNPC to extract and refine Russian crude and to operate filling stations in China.

Bogdanchikov, speaking to reporters at the business forum, didn't give any other details about the ventures.

Both governments have used Putin's visit to promote what they call their strategic partnership.

They have underscored shared positions to international disputes such as Iran and North Korea's nuclear programs and made passing swipes at what they see is U.S. dominance in global affairs.

In the U.N. Security Council, Russia and China - both permanent members with veto power - are holding out from toughening positions on Iran and its compliance with the demands of the International Atomic Energy Agency.

"We share a common view on most international issues ... to use multilateral cooperation to reach agreements that all parties can accept," Lavrov said. "And not to push some issue or other onto the agenda of the day just for political reasons."

Later Wednesday, Putin, a black belt in judo, flew to Shaolin, the Chinese town regarded as the birthplace of the martial art kung fu, for a brief visit before returning to Moscow.


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