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Politics : The Iraq War And Beyond

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To: Ed Huang who wrote (6321)10/13/2004 8:26:10 PM
From: Ed Huang  Read Replies (1) of 9018
 
Oil set to top Russia-China talks


Putin wants China's high-tech investments
Russian President Vladimir Putin is starting a three-day state visit to China on Thursday with energy and trade issues set to dominate the talks.
On the eve of the trip, Mr Putin said Russian interests would come first in deciding where to build a highly contested oil pipeline from Siberia.

Energy-hungry China and Japan have both been vying for Russia's oil.

The two Asian rivals have offered huge investments if their preferred pipeline route is picked by Moscow.

Chinese Prime Minister Wen Jiabao pledged to invest about $12 billion (9.75bn euros) in the Russian energy sector during his Moscow talks in September.

The Japanese government has also promised at least $5bn in investment in Russia's underdeveloped Far Eastern region.

'Frank' discussion

In an interview to Chinese reporters a day before his China visit, President Putin said that the charged geopolitical debate over the route of the oil pipeline had not been decided yet.


China is importing as much oil as it possibly can

"First of all, we have to be driven by our national interests. We have to develop the eastern territories of the Russian Federation, the territories of the Far East," Mr Putin said in the interview, according to a transcript released by the Kremlin.

Mr Putin said Russia welcomed China's plans to invest in the Russian economy, but urged Beijing to put its money into sectors other than energy.

"We would like these investments to be fairly balanced... and they must first of all be focused on high-end technologies," he said.

President Putin also promising to hold "an absolutely frank" discussion with Chinese President Hu Jintao on the issue.

Mr Putin's message of putting Russian interests first may sound to Chinese ears like an impending rejection of its proposal, the BBC's Louisa Lim in Beijing reports.

A pipeline to China would run about 2,400 kilometres (1,440 miles) from the Siberian city of Angarsk to the Da Qing oil refineries in north-eastern China.

The estimated cost of the project stands at about $3bn dollars (2.4bn euros), but official figures vary.

The route favoured by Japan would cover some 4,100 km form the city of Taichet to the Sea of Japan port of Nakhodka. It is estimated that this project would cost four times as much as the Chinese route.

Fight on terrorism

President Putin and top Chinese officials are expected to sign a range of deals on issues such as space flights, atomic energy and high technology, our correspondent says.

A joint communiqué will also be issued which is expected to feature the issue of terrorism.

Both countries have been accused of using the war against terror to perpetrate human rights abuses and both have responded by accusing other countries of using double-standards in the war against terrorism, our correspondent says.


news.bbc.co.uk
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