Politic-Economic-Society-Tech

Russia and China to sign seven important agreements in the sphere of economics

Victor Sokolov

Chinese Prime Minister Zhu Rongji began his tour of Russia by visiting St. Petersburg. On Friday (September 8), he will meet his Russian counterpart, Mikhail Kasyanov, in that city.

The Chinese statesman is accompanied by the largest delegation in the entire history of bilateral relations. It includes more than 140 representatives from all the key ministries and agencies of China. And this fact indicates that the current visit goes beyond the customary framework. This implies the laying of a serious economic foundation for Russian-Chinese ties for a long period into the future.

This is confirmed by the fact that seven important economic agreements are to be signed during the talks. According to one of the agreements, China acknowledges that Russia aircraft are suitable for use in Chinese territory. A contract to supply China with the first consignment of Tu-204 passenger liners is to be finalized during the visit.

The two sides are to coordinate the feasibility report for the construction of an oil pipeline from Russia to China. This shall practically double the trade turnover between the two countries, bringing it up to $6 billion.

The pipeline will link Irkutsk Region with the Chinese city of Daljan. It is expected that all the designing work will be completed by 2003, and oil deliveries are to start in 2005 at a volume of 20 million tons at first, and in three years, it will be increased. In all likelihood, the Russian side in the construction of the pipeline will be represented by YUKOS, and the Chinese side - the Oil and Gas Corporation of China.

At the same time, during the visit there are no plans to sign an agreement on the joint development of Kovyktinsky gas condensate field in Irkutsk Region for subsequent deliveries of gas to China. Consultations on the given project are to continue during the visit, and it is quite possible that the result will be positive.

Other agreements to be signed refer to the establishment of a commission for cooperation in the spheres of telecommunications, atomic power engineering, forestry and the development of interregional ties along the common border. On top of that, Russia and China are to form an international association of producers and exporters of chemical fertilizers.

Actually, the preparatory phase in the present Russian-Chinese dialogue began when State Councilor Wu Yi arrived in Moscow a few days ago and she is currently preparing more documents that are to be signed.

President Vladimir Putin is to receive the Chinese prime minister in Moscow on September 9. Besides that, it is planned that the guest from China will meet with business circles.

Chinese sources hold that the visit of Zhu Rongji will give fresh impetus to the expansion of all-round cooperation between Russia and China precisely in the economic sphere. Russian experts are of the same opinion.



source: russianobserver.com, September 7, 2001,