XI EYES CLOSER ENERGY ALLIANCE WITH MOSCOW
Cooperation in the sector is a cornerstone of ties between the two countries, president tells forum as trade in power with Russia hits historic high
China is willing to build a closer partnership with Russia in energy cooperation, President Xi Jinping has said.
The remarks came as energy trade between the two countries reached a historic high this year amid an escalating Western boycott of commodities from Russia following its invasion of Ukraine.
Energy cooperation was an important cornerstone of practical cooperation between China and Russia, and it was also a positive force in maintaining global energy security, Xi said in a congratulatory letter sent to this week’s 4th China-Russia Energy Business Forum.
“China is willing to work with Russia to forge a closer energy partnership, promote clean and green energy development, and jointly maintain international energy security and the stability of industry supply chains,” Xi said, according to Xinhua.
He said the neighbouring countries had strengthened communication and cooperation and pushed forward major projects in the face of external challenges, and this reflected the strong resilience of their energy cooperation and the broad prospects of a comprehensive strategic partnership between the two countries.
Russian President Vladimir Putin also sent a message to the forum, saying that despite the complicated international situation, the partnership and strategic interactions between Russia and China continued to develop.
“The energy industry remains one of the key and most rapidly evolving areas of our economic cooperation,” Putin said, according to Russian news agency Tass.
Russia-Chinese trade turnover in the energy sector this year had grown by 64 per cent, year on year, with physical deliveries increasing by around 10 per cent, Russian Deputy Prime Minister Alexander Novak told the forum.
Held both virtually and in person, the forum took place simultaneously in Moscow and Beijing, with the two venues setting up video calls.
Bolstered by soaring energy prices and Beijing stepping up purchases, bilateral trade between China and Russia increased by 33 per cent in the first 10 months of this year, reaching US$153.9 billion, with Chinese imports jumping by almost 50 per cent to US$94 billion.
Around 80 per cent of Chinese imports of Russian products are minerals, with 70 per cent of that comprising crude oil, according to Post calculations based on Chinese customs figures.
In an effort to curb Moscow’s ability to fund its invasion of Ukraine, the Group of Seven countries proposed setting price caps on Russian energy exports. In response, the Kremlin vowed to divert oil to countries, such as China and India, that did not support the idea.
Russia has already become China’s second-largest supplier of crude oil this year – trailing only Saudi Arabia – by exporting 72 million tonnes valued at US$49 billion in the first 10 months.
Despite suppressed demand for energy products amid widespread Covid-19 lockdowns, China’s imports of Russian natural gas have also grown this year, while imports from most other countries have declined.
From January to October, China’s imports of Russian liquefied natural gas surged by 32 per cent to 4.9 million tonnes, worth about US$5.3 billion, according to customs data.
The value of Russian pipeline natural gas imports in the first 10 months of this year reached US$3.1 billion, or almost triple the import value during the same period last year.
Beijing and Moscow agreed in September to settle payments for Russian gas supplies to China in roubles and yuan, in an effort to insulate themselves from Western pressure.
China is willing to work with Russia to forge a closer energy partnership
PRESIDENT XI JINPING