Tuesday, March 21, 2006

New Super Powers tell the old one to stop meddling....

Putin commits to gas supplies for China

Associated Press

Beijing — Russian President Vladimir Putin announced plans Tuesday to step up energy supplies to China with a gas pipeline opening within five years, but there was no word of an agreement to build a separate pipeline sought by Beijing to deliver Siberian oil to the energy-hungry country.

A Russian minister said Moscow would finance a feasibility study for the oil pipeline and can't discuss a construction timetable until the study is done.

The announcements came after Mr. Putin and his Chinese counterpart, Hu Jintao, met for the fifth time in less than a year and pledged to promote political and trade ties between the former Cold War enemies, which say their relations are at their best point ever.

Beijing wants to secure access to Russian oil and gas, while the two sides have built up a political alliance to counterbalance U.S. dominance in global affairs.

The gas pipeline will deliver up to 2.8 trillion cubic feet of gas annually, Mr. Putin told reporters. He didn't give any details about its route or pricing. But a Kremlin spokesman, who briefed reporters on condition of anonymity, said prices probably would be set by world market rates.

Moscow and Beijing want to spur investment and double last year's $29-billion (U.S.) in trade by 2010.

China is a leading buyer of Russian oil, which for now is delivered by railway tank car, and is the top foreign customer for Moscow's arms industry.

Many observers had expected news about the 2,550-mile Siberian oil pipeline to the Pacific coast. Both Tokyo and Beijing have manoeuvred hard to secure a favourable routing.

There can be no talk of ‘when' until a feasibility study is completed,” said Viktor Khristenko, Russia's Minister of Industry and Energy.

In a 13-page statement, Mr. Putin and Mr. Hu pledged to promote links between their energy, telecom, transportation and other industries.

Mr. Putin endorsed China's claim to Taiwan, the self-ruled island that Beijing says it part of its territory.

The sides express decisive support for one another's policies and actions in the questions of defending state sovereignty, unity and territorial integrity,” the statement said. “Russia will continue the policy [supporting] ‘one China' declared by the Chinese government ... and Taiwan is an indivisible part of China.

Mr. Putin said gas for the new pipeline would come from fields in both eastern and western Siberia.

But western Siberian reserves are already stretched thin, according to Valery Nesterov, oil and gas analyst with the Troika Dialog investment bank in Moscow.

“I don't see where Russia in the foreseeable future can pile up these resources
,” he told the Associated Press.

Mr. Putin was accompanied by a 90-member delegation of leaders of Russia's state-owned Rosneft oil company and Gazprom gas monopoly, as well as aircraft, telecommunications and other industries.

Earlier Tuesday, Mr. Putin and Chinese Vice-Premier Tang Jiaxuan attended the opening of a media centre to promote an upcoming Russian cultural year in China.

On Wednesday, the Russian leader -- a black belt in judo -- is scheduled to visit Shaolin, the Chinese town regarded as the birthplace of the martial art kung fu.

China and Russia have pledged commitment to a “multi-polar world” and last year warned other nations against attempts to dominate global affairs and interfere in sovereign nations' domestic matters.

The Hu-Putin meeting comes after Washington released a foreign policy review last week that expressed dismay at rollbacks in democratic reform in Russia and warned China against denying personal and political freedoms.


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