Russia-China to form strategic energy alliance: Putin
May 19, 2014, 5:15 am

Russia and China will implement a list of joint projects in 40 priority areas with total investments of about $20 billion during Putin’s visit to Shanghai from 20th May [AP]

Putin was speaking to Chinese media ahead of his trip to Shanghai where he will hold discussions with his Chinese counterpart Xi Jinping and sign a record number of cooperations agreements.

The two countries are “steadily moving towards the establishment of a strategic energy alliance”, said Putin.

“A large-scale project worth over $60 billion is underway to supply China with crude oil via the Skovorodino-Mohe pipeline. The arrangements on export of Russian natural gas to China have been nearly finalised. Their implementation will help Russia to diversify pipeline routes for natural gas supply, and our Chinese partners to alleviate the concerns related to energy deficit and environmental security through the use of “clean” fuel,” he said.

Russia and China will implement a list of joint projects in 40 priority areas with total investments of about $20 billion.

The two nations have also reached an agreement on joint design of a wide-body long-range aircraft and on developing a heavy helicopter.

“Establishing closer ties with the People’s Republic of China, our trusted friend, is Russia’s unconditional foreign policy priority,” claimed Putin.

The two sides are also eyeing “deeper coordination in the international arena”, said Putin.

“Russia and China successfully cooperate in the international arena and closely coordinate their steps to address international challenges and crises. Our positions on the main global and regional issues are similar or even identical,” he said.

Significantly, the Russian President said an upcoming Asian Summit will try to establish a new security architecture in the Asia Pacific.

“Russia and China have actively advocated establishing a new security and sustainable development architecture in the Asia-Pacific. It should be based on the principles of equality, respect for international law, indivisibility of security, non-use of force or threat of force. Today this task is becoming increasingly important,” he said.

Putin’s statements assume importance in the backdrop of the Obama administration’s thrust on the much-hyped Asia Pivot and what Beijing alleges is it’s “China containment” policy.

Meanwhile, alluding to a currency swap agreement, Putin said the two nations will also look to guard against fluctuations of foreign currencies affecting bilateral trade.

“We must also strengthen financial cooperation and protect ourselves from exchange-rate fluctuations among the world’s major currencies. Therefore, we are now considering how to increase mutual settlements in national currencies,” he said.

In 2013, the volume of bilateral trade was close to $90 billion. The two sides are targeting $100 billion by 2015 and up to $200 billion by 2020 in bilateral trade.

TBP