Russia, China sign deal on oil pipeline

By Vladimir Radyuhin

MOSCOW, SEPT. 11. Russia's trade with China will touch close to $20 billion this year, a senior Russian Government member said at the end of Russian-Chinese economic talks in Moscow.

Russia's Deputy Prime Minister, Mr. Ilya Klebanov, said the $20- billion figure included $10 billion in regular trade, plus another $10 billion in unofficial shuttle trade and defence deals.

Russian-Chinese trade increased by 40 per cent last year and is likely to show even more dynamic growth this year.

The visiting Chinese Premier, Mr. Zhu Rongji, has inked deals for building an oil pipeline from Siberia to China and to buy Russian TU-204 airliners.

Meeting the Chinese Premier in the Kremlin on Tuesday, the Russian President, Mr. Vladimir Putin, said he was happy with the ``dynamic'' growth of Russian-Chinese cooperation in trade and defence areas.

He said he was going to rush through Parliament the Russian- Chinese friendship treaty that the two countries signed in July.

A 2,400-km pipeline to be built by 2005 at a cost of $1.7 billion will eventually carry 30 million tonnes of oil per year.

According to Mr. Klebanov, China was looking forward to getting half of its $25-billion oil imports from Russia.

Beijing also agreed to buy five TU-204 jets, with a view to buying 10 more at a later date. This is the first time in 20 years that Chinese has purchased civilian aircraft from Russia.

Moscow has also invited Beijing to pool efforts in building new aircraft, Mr. Klebanov said.

The Russian Deputy Prime Minister also revealed that Russia's natural gas monopoly Gazprom had teamed up with the Royal Dutch Shell to build a gas pipeline across China valued at $10 billion.

Russia also hopes to win multi-billion contracts for the construction of several thermal and hydropower stations in China's western provinces.

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Section  : International
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