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China knocking on
Russia's door
By Sergei Blagov
MOSCOW - With Russia and China pledging to
develop their partnership, investment and energy
issues topped the agenda of their bilateral summit
in the Russian capital. The countries also lashed
out at perceived US unilateralism by issuing a
declaration demanding a curb on outside
interference in nations' internal affairs.
During his visit to Russia from June 30 to
July 3, Chinese President Hu Jintao discussed ways
to boost bilateral cooperation, including
investment and the energy sector, and signed a
declaration with President Vladimir Putin
denouncing "monopoly and domination in
international affairs" and calling for an end to
"attempts to divide nations into leaders and those
being led".
The "Declaration on the World
Order in the 21st Century" did not mention the US
directly, but it left little doubt that Washington
was targeted. It said: "All countries of the world
should strictly observe the principles of mutual
respect of sovereignty and territorial integrity,
mutual non-aggression and non-interference in each
other's internal affairs." Russia and China agreed
on the need to fight terrorism and said that
double standards on the issue were unacceptable.
Russia has often accused the West of having double
standards in the "war against terror".
The
leaders offered each other support in Moscow's war
against separatist rebels in Chechnya and
Beijing's efforts to assert control over Taiwan.
Hu announced that the two sides had also discussed
the promotion of stability in Central Asia, reform
of the United Nations and "the nuclear problem of
the Korean peninsula".
The countries
praised their improved relations in recent years
and said that their declaration was important for
future ties. "This declaration has great
importance in deepening the strategic cooperation
between our two countries," Hu said. Russia-China
ties have warmed with the signing last year and
ratification this year of the final settlement of
a protracted border dispute.
Putin and Hu
also agreed to strengthen military ties as they
prepare to hold joint military exercises next
month. The war games, "Friendship 2005", to be
conducted in Russia and China from August 18-25,
will be the largest between the countries in 50
years. Russia will be represented by 3,000 members
of the air force, airborne troops and the navy,
while China will commit about 5,000 soldiers and
officials.
Trade between Russia and China
this year is expected to grow by more than 20%
after a record US$21 billion in 2004. Bilateral
investment cooperation is booming. Just in the
past month, Russia and China signed investment
agreements totaling more than $2 billion. Russian
officials indicated that China could invest up to
$12 billion in Russia by 2020.
Moscow and
Beijing have long eyed bilateral projects in
energy infrastructure, and want to revive a
project to build a $1.5 billion 2,600 kilometer
power transmission line from the Irkutsk region in
Siberia to China. Moreover, Beijing has indicated
interest in potential investments in Russian
hydropower projects.
However, Hu has to
date failed to make major progress on securing oil
supplies from Russia as Moscow is still wavering
on an oil pipeline to China. In December 2004,
Russia decided to build a pipeline to export crude
to Japan, the US and other Pacific Rim nations.
All the same, Russia pledged to increase
its total oil deliveries to China by rail to 11
million tons this year, from 6 million tons in
2004. At the summit meeting in Moscow, state oil
firm Rosneft signed cooperation deals with the
Chinese oil firm Chinese National Petroleum
Corporation and Asia's biggest refiner, Sinopec.
Rosneft alone plans to increase annual deliveries
to China to 9 million tons in 2006, from 4 million
tons in 2005.
This year state-owned oil
company Rosneft took over from Yukos as the main
oil exporter to China. In February, China
reportedly provided Rosneft with a $6 billion
loan, which was allegedly used for the Russian
firm's purchase of Yuganskneftegaz, the Yukos
production unit auctioned off in December. Rosneft
later said that the money was simply an advance
payment for future deliveries.
China is
understood to want to beat Japan as the main
beneficiary of a trans-Siberian oil pipeline. Now
Beijing reportedly wants more specific commitments
on access to Russian oil and gas projects. As
Moscow has been reluctant to promise Beijing
exclusive access to its Siberian oil and gas
riches, the pipeline game appears far from over.
Sergei Blagov covers Russia and
post-Soviet states, with special attention to
Asia-related issues. He has contributed to Asia
Times Online since1996. Between 1983 and 1997, he
was based in Southeast Asia. In 2001 and 2002,
Nova Science Publishers, NY, published two of his
books on Vietnamese history.
(Copyright 2005 Asia Times Online Ltd.
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