Cooperation between Russia and China

Russia and China are planning to sign a memorandum of cooperation in the oil sector, Deputy Prime Minister Igor Sechin said at a second round of talks on Russia-China energy dialogue.
"A memorandum, drafted to tackle problems in the oil sector, says that a working group will be formed, to be led by Energy Minister Sergei Shmatko on the Russian side and by the head of the State Energy Department on the Chinese side, Sechin said.

The Russian-Chinese energy dialogue has been developing "in the right direction," he said. Joint ventures have been set up in China and Russia. The state pipeline operator Transneft (RTS: TRNF) has drafted a plan to lay a branch of the East Siberia - Pacific Ocean oil pipeline (ESPO) to China, he also said.

"The technical aspect of the project is being negotiated with the Chinese side. Transneft and China National Petroleum Corporation (CNPC) are to start discussing the terms of this project soon," Sechin said.
Russia and China are in intensive talks on cooperation in the gas and in the electricity and nuclear energy sectors, he said.

Chinese Vice Premier Wang Qishan in turn said that Russia and China had reached mutual understanding on several key energy projects. "The two countries have held four rounds of talks on contract energy projects. We have come to terms on some key projects, which makes top-level decision-making possible," he said.

Wang also said that "stronger practical cooperation between the two countries" is particularly important in conditions of a global financial crisis. Relations with Russia "remain China's key foreign- policy priority," he said.

The second round of talks was also attended by Energy Minister Sergei Shmatko, Rosneft (RTS: ROSN) head Sergei Bogdanchikov, Transneft head Nikolai Tokarev and the chief executives of other companies.