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Russia's Putin seeks gas deal on state visit to China | Russia's Putin seeks gas deal on state visit to China |
(about 9 hours later) | |
Russian President Vladimir Putin has begun a two-day state visit to China with a major gas supply deal high on the agenda. | Russian President Vladimir Putin has begun a two-day state visit to China with a major gas supply deal high on the agenda. |
A price for the Russian gas was not agreed on Tuesday, but analysts say a deal could still be struck before Mr Putin leaves China on Wednesday. | A price for the Russian gas was not agreed on Tuesday, but analysts say a deal could still be struck before Mr Putin leaves China on Wednesday. |
Mr Putin described China as a reliable friend and Russia's leading foreign trading partner. | Mr Putin described China as a reliable friend and Russia's leading foreign trading partner. |
It is his first visit to China since President Xi Jinping took office. | It is his first visit to China since President Xi Jinping took office. |
The state visit comes as China hosts a key summit of Asian states in Shanghai that includes delegates from nearly 40 countries and international organisations. | The state visit comes as China hosts a key summit of Asian states in Shanghai that includes delegates from nearly 40 countries and international organisations. |
UN Secretary-General Ban Ki-moon is attending, as are the leaders of Iran, Pakistan, Kazakhstan and Cambodia. President Xi is expected to make announcements on security in Asia at the summit. | UN Secretary-General Ban Ki-moon is attending, as are the leaders of Iran, Pakistan, Kazakhstan and Cambodia. President Xi is expected to make announcements on security in Asia at the summit. |
Analysis by Carrie Gracie, BBC News, London | |
The welcoming ceremony for President Putin was full of upbeat language. He described China as a reliable friend and Xi Jinping promised strategic co-operation. | The welcoming ceremony for President Putin was full of upbeat language. He described China as a reliable friend and Xi Jinping promised strategic co-operation. |
To underline the point, there were joint naval exercises. But the Russians had raised expectations of the signing of a lucrative 30-year deal to supply natural gas to China. The energy giant Gazprom said they were incredibly close to agreement but clearly the Chinese are driving a hard bargain on price. | To underline the point, there were joint naval exercises. But the Russians had raised expectations of the signing of a lucrative 30-year deal to supply natural gas to China. The energy giant Gazprom said they were incredibly close to agreement but clearly the Chinese are driving a hard bargain on price. |
The government in Beijing is well aware that after the chill in relations with Europe that followed the Ukraine crisis, Moscow needs to stop depending on the west for 80% of its energy sales. And China does need more and cleaner energy. | The government in Beijing is well aware that after the chill in relations with Europe that followed the Ukraine crisis, Moscow needs to stop depending on the west for 80% of its energy sales. And China does need more and cleaner energy. |
But a long history of falling into and out of alliances with Moscow has taught Beijing to keep a hard-nosed focus on its own national interest. It knows Russia needs a friend in the East and it is extracting maximum advantage. | But a long history of falling into and out of alliances with Moscow has taught Beijing to keep a hard-nosed focus on its own national interest. It knows Russia needs a friend in the East and it is extracting maximum advantage. |
In an interview with Chinese media before his arrival, Mr Putin called China "Russia's reliable friend" and said the two countries had reached a new stage in bilateral and military ties. | In an interview with Chinese media before his arrival, Mr Putin called China "Russia's reliable friend" and said the two countries had reached a new stage in bilateral and military ties. |
"It would be no exaggeration if I said that the co-operation between our two countries is at its highest level in history," the Russian leader said. | "It would be no exaggeration if I said that the co-operation between our two countries is at its highest level in history," the Russian leader said. |
Russia and China have also kicked off a joint military exercise involving their navies. | Russia and China have also kicked off a joint military exercise involving their navies. |
China is Russia's largest single trading partner, with bilateral trade flows of $90bn (£53bn) in 2013, and the two neighbours aim to double the volume to $200bn by the end of the decade, according to agencies. | China is Russia's largest single trading partner, with bilateral trade flows of $90bn (£53bn) in 2013, and the two neighbours aim to double the volume to $200bn by the end of the decade, according to agencies. |
Expectations are high that the visit would seal a contract under which Russia's state-owned Gazprom would supply China National Petroleum Corp (CNPC) with natural gas for the next 30 years. | Expectations are high that the visit would seal a contract under which Russia's state-owned Gazprom would supply China National Petroleum Corp (CNPC) with natural gas for the next 30 years. |
Russia has faced international condemnation for its annexation of Crimea from Ukraine. Russia has also deployed troops near the border of Ukraine, sparking concerns about a possible invasion. | Russia has faced international condemnation for its annexation of Crimea from Ukraine. Russia has also deployed troops near the border of Ukraine, sparking concerns about a possible invasion. |
For its part, China has attracted criticism for recent actions in the South China Sea. | For its part, China has attracted criticism for recent actions in the South China Sea. |
China's refusal to move an oil rig stationed in waters claimed by Hanoi sparked an outbreak of protests across Vietnam last week, with demonstrators targeting Chinese workers and Chinese-owned factories. At least two deaths have been reported. | China's refusal to move an oil rig stationed in waters claimed by Hanoi sparked an outbreak of protests across Vietnam last week, with demonstrators targeting Chinese workers and Chinese-owned factories. At least two deaths have been reported. |
The Philippines has also accused China of building an airstrip on the disputed Johnson Reef. | The Philippines has also accused China of building an airstrip on the disputed Johnson Reef. |