Full trust between Russia and China

Alexander Vatutin

Nov 24, 2010 20:51 Moscow Time

Dmitry Medvedev and Wen Jiabao. Photo: RIA Novosti

Chinese enterprises show great interest in being involved in large-scale investment projects in Russia. 19 agreements that were signed during the Chinese Premier Wen Jiabao’s visit to Russia attest to that.Chinese enterprises are ready to take part in the creation of the infrastructure in Russia’s special economic zones. To stimulate this process, the Chinese Eximbank has opened a line of credit for the Russian Sberbank. Exchanges in the two countries are starting two-way ruble-yuan trade, sidestepping the dollar.The agreements that were signed in Moscow embrace practically all areas of cooperation – from energy to humanitarian projects. At his meeting with the Chinese premier on Wednesday, Russia’s President Dmitry Medvedev said that these agreements “reflect the intensive dynamics of Russo-Chinese relations.”The most significant cooperation is in energy. One of the most actively discussed projects today is the supply of Russian gas to China. The Chinese State Oil and Gas Corporation is seeking closer cooperation with the Russian Rosneft company, as well as with the Sovcomflot company with respect to long-term supplies of hydrocarbons.Cooperation between China and Russia in energy strengthens the whole world’s energy security, Alexander Salitskiy from the Institute of Global Economy and International Relations believes.“For our two countries, this is a matter of security. Russia’s energy sector has a certain excess of raw materials, which makes it possible to solve some other problems in the national economy. The demand for raw materials in Europe is not very stable. For Russia, the Chinese market is a way to diversify our deliveries. This will make Russia less dependant on the European market. So, in the field of energy, our two countries’ interests coincide as well.” To name but a few joint projects, one may mention the construction of the oil pipeline from eastern Siberia to the Pacific Ocean and the construction of a nuclear power plant in Tianwan. In the first 8 months of 2010, bilateral trade volume between Russia and China reached $ 42 mln, which is twice up on last year. Russia’s and China’s interests in international politics coincide on many points as well. The two countries are closely cooperating to find a solution to the Iranian nuclear program and to prevent an armed conflict between the two Koreas. To put it briefly – there is a lot of trust between Russia and China – both in politics and in economics.