Tuesday, March 21 2006 18:43 Hrs (IST) - World Time -

Beijing: Cementing their strategic political relations, China and Russia today (Mar 21 2006) inked three major deals on oil and natural gas cooperation during Russian President Vladimir Putin's visit here.

Chinese President Hu Jintao and Putin witnessed the signing of the three pacts and 12 other cooperation documents after holding talks at the Great Hall of the People here.

The three deals include a principled agreement between the China National Petroleum Corp (CNPC) and the Russian oil company of Rosneft for forming joint ventures on further oil cooperation, a Memorandum of Understanding between CNPC and Russia's natural gas company Gazprom for natural gas supply to China, and a summary of negotiations between CNPC and Transneft, a pipeline transport company of Russia.

Putin said that Russia will be exporting an annual 60-80 billion cubic metres of gas to China.

"We have a clear vision of our future supplies (from western and eastern Siberia) - 30-40 billion cubic metres from either area," he told sources after talks with Hu. "The reserves in eastern and western Siberia are big enough."

Hu and Putin also signed a Joint Statement, agreeing to assist in the settlement of the situation around the Iranian nuclear programme by political and diplomatic means.

"The sides noted that they will cooperate closely in the settlement of the situation around the Iranian nuclear programme by political and diplomatic means," the joint statement said.

A ceremonial red carpet welcome

Earlier, Hu hosted a ceremonial red carpet welcome for Putin prior to their bilateral talks.

Hu said he firmly believes that Putin's visit to China will boost strategic partnership between the two countries.

"I am confident that the current visit to China will give an impetus to strategic partnership," Hu said in his opening remarks at the Great Hall of the People.

Hu said this year marks the 10th anniversary of the establishment of China-Russia strategic partnership of coordination and fifth anniversary of the Sino-Russian good neighbourly treaty of friendship and cooperation.

"The fact that President Putin is heading such a big delegation to China and will attend the opening ceremony of the Year of Russia in China demonstrates that Putin highly values the Sino-Russian relations," Hu said.

"I believe this visit, especially the hosting of the theme year in the other's country, will enhance the mutual understanding between the two peoples and advance the China-Russia strategic partnership of coordination," he said.

Echoing Hu's remarks, Putin said the start of the Year of Russia in China, which is unprecedented in scale and involves activities in various fields, shows the current Russia-China relations have reached "a very high level, and laid a better foundation for the future development" of their ties.

Hu and Putin also held a closed-door meeting before their official talks.

Putin arrived here this morning on a two-day state visit at the invitation of Hu. This is Putin's second visit to China since he was re-elected Russian President in 2004.

China-Russia bilateral trade volume hit USD 29.1 billion in 2005, up 37.1 per cent year on year. The good momentum is expected to lay a solid foundation to meet the goal of USD 60 to 80 billion in trade by 2010, Chinese officials say.