Economy

China, Russia energy talks tackle price disputes

By Qin Jize and Cheng Guangjin (China Daily)
Updated: 2011-06-01 08:04

BEIJING - Vice-Premier Wang Qishan on Tuesday attended the seventh round of energy talks between China and Russia in Moscow, held in a bid to resolve price disputes between energy companies from the two countries.

"Energy cooperation is comprehensive, long-term and strategic, and a major part of the strategic and cooperative partnership between the two countries," Wang said.

Wang and Russian Deputy Prime Minister lgor Sechin co-chaired the talks.

"The healthy development of both economies also brings historic opportunities for energy cooperation," Wang said.

"The two countries' strategic and cooperative partnership has reached a level that allows us to solve any problems," Sechin said.

China said earlier that disagreements over oil prices between Chinese and Russian energy firms would not hinder bilateral energy cooperation.

Foreign Ministry spokeswoman Jiang Yu told reporters at a news briefing that Beijing and Moscow have asked energy firms from both sides to resolve the issue through respectful dialogue. Analysts said energy talks at the vice-prime minister level are of great significance and are expected to pave the way for President Hu Jintao's upcoming visit to Russia.

"Both sides are hoping the meeting can reach an agreement, but whatever the results, the prospects for bilateral energy cooperation are promising," said Xia Yishan, a senior expert on energy strategies and researcher with China Institute of International Studies.

He said that energy cooperation between the two countries is mutually beneficial as both are seeking the development of energy exports and import diversification.

Xia also noted that it is time for a natural gas deal to be finalized after negotiations that have lasted more than a decade.

Wang Haiyun, director of the Energy Diplomacy School of the China Foundation for International Studies, was not optimistic that an agreement could be reached soon on the pricing of natural gas.

The price currently offered by Russian companies is too much for their Chinese counterparts to bear, Wang was quoted as saying by National Business Daily.