Tags: Russia | China | Agree | Pipeline

Russia, China Agree to Pipeline

Sunday, 09 September 2001 12:00 AM

The deal was signed in Russia's second largest city of St. Petersburg where Chinese Premier Zhu Rongji held talks with Russian Prime Minister Mikhail Kasyanov.

According to the agreement, the proposed 1,488-mile pipeline will carry oil from the eastern Siberian city of Angarsk to Daling in northeast China.

The design of the pipeline should be completed by the end of 2003 and construction finished in 2005.

The proposed pipeline will cost an estimated $1.7 billion. During Stage One -- from 2005 to 2010 -- the deliveries of Russian oil to China will amount to 20 million tons annually.

Stage Two should bring an increase in oil supplies totaling 30 million tons per year to be shipped until 2030.

Russia's YUKOS and Transneft oil companies have been named to complete construction and operate supplies.

The talks also raised the issue of Russia's Gazprom gas giant's participation in the tender for construction of the transnational East-West gas pipeline in China. Currently, Russia ships via railway some 2 million tons of oil annually to China.

Additionally, Russia transports oil produced by China at drills in the former Soviet republic of Kazakhstan.

Zhu and Kasyanov also signed a contract to sell five Russian-made Tu-204 passenger jets to Beijing.

After the talks, the they praised budding trade ties between the two countries that they said were boosted after Russian President Vladimir Putin and his Chinese counterpart, Jiang Zemin, signed earlier this year a comprehensive bilateral agreement on partnership and friendship.

"The annual turnover in trade between our countries will reach $10 billion this year," said Kasyanov.

"Two years ago it was $5.5 billion and in 1992 it was less then $2 billion."

Kasyanov emphasized that a significant change had as well taken place in the structure of trade.

"In 1999, deliveries of our machinery to China amounted to only 5 percent of the total amount of export revenues whereas today that figure has soared to 20 percent," said Kasyanov.

Zhu said that China was interested in exporting more consumer goods to Russia.

As an example, the Chinese premier noted that the United States imported annually between $70 and $80-million worth of Chinese consumer goods.

Zhu will fly Sunday to Moscow where he is scheduled to have talks with Putin and other senior Russian officials.

The Chinese premier will leave Russia Wednesday.

--

Copyright 2001 by United Press International.

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The deal was signed in Russia's second largest city of St. Petersburg where Chinese Premier Zhu Rongji held talks with Russian Prime Minister Mikhail Kasyanov. According to the agreement, the proposed 1,488-mile pipeline will carry oil from the eastern Siberian city of...
Russia,,China,Agree,Pipeline
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2001-00-09
Sunday, 09 September 2001 12:00 AM
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