Putin seeks trade boost with China
BEIJING, China -- Russian President Vladimir Putin has arrived in China to mark 55 years of diplomatic ties between the two nations and to seek a further boost in bilateral trade.
Two-way trade between China and Russia is expected to reach $20 billion this year, up from about $16 billion in 2003.
Putin wants to see that grow to $60 billion by about 2008, and is keen to broaden Russian exports from its current energy and resources base to include more technology.
During Putin's three-day state visit as a guest of China's President Hu Jintao, the two leaders are expected to sign a joint communiqué and other agreements on business cooperation, including in energy.
Putin believes relations with China are on an even keel, despite differing views on resource development priorities.
In an interview with Chinese media in Moscow just before his departure, Putin said: "We have successfully overcome fundamental disputes and there are no matters that we can't discuss with a candid attitude."
While Putin will push for increased trade and investment in areas such as energy, he has dampened Beijing's hopes for an oil pipeline from western Siberia, according to Reuters news agency.
China, the world's seventh-largest economy, is looking to secure more crude oil after record imports this year. Chinese state oil traders forecast a rise in imports of up to 20 percent next year.
A plan by the embattled Russian oil giant Yukos to lay a pipeline that would deliver up to 30 million tonnes of oil a year to China has been stalled after Putin said he would prefer it to run to Russia's Pacific coast.
Still, the state-run Xinhua news agency quoted Putin as saying Russia and China could develop close cooperation in the energy sector.
"Russia hopes China becomes a reliable energy market with its rising demands. No factors in politics, ideology and economy can hold back cooperation in this field," Putin said.
Reuters reported that Putin made no mention of another project by TNK-BP to run a gas pipeline to China from Kovykta in Siberia, stalled after gas giant Gazprom became involved in the deal.
Gazprom and Chinese oil company CNPC are expected to sign a partnership deal during Putin's visit. But it was not clear whether the Kovykta project will go forward.
This is Putin's third visit to China and his first in his second presidential term. In addition to Beijing, he will visit the historical city of Xi'an in northwest China's Shaanxi province.
