Russia and China have agreed to significantly expand cooperation in the energy sector and boost bilateral trade to $150 billion in coming years.

Addressing a joint press meeting on Friday with China’s new President Xi Jinping, on a state visit to Russia, President Vladimir Putin said the visit will have “historic results and strengthen the strategic character of our relations”. Mr. Xi said the two sides had reached “breakthrough agreements” in oil, gas and electricity.

The two countries signed a raft of agreements to increase deliveries of Russian crude to China; build an oil refiner; and step up electricity supplies from Russia.

Informed sources said Russia will boost oil shipments to China by 10 million tons from the current level of 15 million tons a year against a $10 billion Chinese loan.

The two have also signed an agreement for the construction of an oil refinery and petrochemical factory in Tianjin, which will use Russian oil.

President of Russia’s state-owned oil giant Rosneft Igor Sechin said Russia could eventually increase its oil deliveries to China to 50 million tons.

Russia’s gas monopoly Gazprom signed an MoU for the supply of natural gas to China along a pipe to be built in Russia’s Far East. A 30-year contract for the shipment of 38 billion cubic metres of gas a year will be signed before the end of the year, Gazprom head Alexei Miller said, adding that Russia could increase the supplies to 60 bcm.

However, the sides are yet to agree on the price of Russian gas.

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