China's Hu heads to Russia urgently seeking fuel
Fri Mar 23, 2007 5:49am ET

By Emma Graham-Harrison
BEIJING (Reuters) - Chinese President Hu Jintao goes to Moscow on Monday, confidently offering trade deals with an economy roaring back home, but urgently seeking oil, gas and assurance as the two countries eye each other's resurgent power.
Hu's three-day state visit to Russia will be his third as president, showing how seriously Beijing is courting its neighbor and President Vladimir Putin. Above all, Russia has the energy supplies China needs to fuel its growth.
"At present, Chinese-Russian relations are developing vigorously and have reached unprecedented levels," Hu told Russian journalists ahead of his visit. He is expected to unveil business deals worth over $4 billion, Chinese officials said.
China is the world's number two oil consumer, and Russia the second-largest exporter. But their potential partnership has been hobbled by both nations' desire to keep a grip on the strategic energy sector and maximize their oil majors' profits.
Previous plans for key crude and gas pipelines have languished after initial agreements were trumpeted by both sides, underscoring the brittleness of the two countries' friendship.
"Chinese-Russian ties are in a phase of improvement that is no mean feat, but undercurrents persist and mutual confidence still urgently needs upgrading," stated an overview of relations in a recent Chinese oil policy journal.
China wants lower prices for the gas and it is unclear whether Russia has enough crude to satisfy China and Japan -- who have been vying for supplies. Moscow has flip-flopped over which of these Asian rivals should get the first pipeline connection. Continued