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Saturday, February 17, 2018

Putin brought back from Beijing supercontact

The two Eastern giants — Russia and China — the newly strengthened cooperation at the highest level. During the official visit of Russian President Vladimir Putin in Beijing the sides signed over 30 major agreements in the field of Economics.

photo: Natalia Gubernatorova

We will remind, Putin’s visit to Beijing was dedicated to the 15th anniversary of the Treaty between the Russian Federation and the PRC on friendship. About what important in the Kremlin is paying the trip can be judged by looking at the composition of the delegation. The Russian leader was accompanied by the head of the Kremlin administration, five Vice-premiers of the Russian Government, a number of Ministers, representatives of business circles, including leaders of “Rosneft” and “Gazprom”. The reason is clear: energy is always given special attention.

Russia increases the volume of supply on the Russian-Chinese oil pipeline project continues the construction of the Tianjin refinery, on schedule is the construction of the gas pipeline “Power of Siberia”, which should reach full capacity in 2020.

Russian President Putin and Chinese President XI Jinping discussed the participation of the Chinese side in the project of high-speed railway (HSR) Moscow — Kazan is estimated at 1 trillion RUB the area with length of about 770 km should be part of a high-speed rail line from Moscow to Beijing at a cost of 7 trillion rubles and the project “silk road” that will connect China with the markets of Europe and the Middle East. Design of high-speed rail (the train speed will reach 400 km/h) will be completed by the end of 2016. Beijing will provide to the project “Moscow — Kazan” twenty years of credit in the amount of 400 billion rubles, more than 100 billion rubles will be transferred as a capital contribution in the special project company. At the same time China refused sovereign guarantees for the project, it is a concession in which the state assumes obligations as a grantor.

Important agreements were signed in the aviation industry: the parties have agreed to jointly develop long-range aircraft and a heavy civil helicopter AHL.

Russia and China signed a Memorandum on the construction of the railway grain terminal in Zabaykalsky Krai, which does not only spur the export of Russian grain, but will contribute to food security of the entire region. This year, the supply of agricultural products to the Chinese market grew by 30%, our country intends to export to China (the largest producer and consumer grain in the world) about half a million tons of wheat and barley. Negotiations are continuing to supply the Chinese market of meat products: pork, beef, poultry.

We had active exchange of views on the creation of a free trade zone between the Eurasian economic Union (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan) and China. The parties also agreed to establish a joint innovation Fund of direct investments.

“Changes in the global economy, instability in commodity markets, currency markets, of course, could not affect our bilateral relations”, — Putin said. However, in 2015 the trade turnover between the two countries amounted to $63.5 billion, which was the highest figure for the Russian Federation. The positive dynamics is observed in early 2016. According to the Russian leader, this year sales of machinery and equipment from Russia to China almost doubled. “Thanks to the joint efforts and thanks to the friendly attitude of our Chinese friends we are changing in the desired direction, the structure of our bilateral trade,” Putin said and recalled: “To reduce dependence on external market conditions, we are expanding the use of national currencies in mutual settlements. The share of the ruble in such payments is 3%, the RMB is 9%”.

“From January to may of this year, bilateral trade between Russia and China amounted to $25.8 billion, he ceased to decline and increased by 2.7% compared to the same period last year. Rapidly growing exports from Russia to China of high-tech products, rapidly moving large-scale joint projects of strategic importance,” said XI Jinping and Putin invited to a meeting of G20 leaders in China in September.

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