China's Hu heads to Russia to boost security

Beijing, Mar 26: Chinese President Hu Jintao headed to Russia today on his third visit as national leader, seeking energy deals but also offering Moscow business opportunities and international cooperation as they expand ties.

A ''strategic cooperative partnership'' between China and Russia was the ''shared desire and inevitable choice'' of the two countries, Hu told Russian journalists in an interview published in Chinese state media today.

The two powers should ''strengthen strategic cooperation in international and regional affairs'', Hu said in the interview, which appeared earlier in Russian media.

China and Russia are permanent members of the United Nations Security Council who have used their veto power to blunt Western efforts to sanction Iran and other challengers to US policy.

Over the weekend, they both backed a UN resolution sanctioning Iran for continued uranium enrichment, which critics say is aimed at eventually giving Tehran the ability to assemble nuclear weapons.

Iran is sure to be on the agenda when Hu sits down for talks with Russian President Vladimir Putin, officials said.

But Hu will also be looking to expand trade between the two rapidly growing economies, especially oil and gas for energy-thirsty China.

China is the world's number two oil consumer, and Russia the second-largest exporter. But their potential partnership has been stymied by both nations' desire to keep a state grip on energy deals. Previous plans for key crude and gas pipelines have languished after initial agreements were trumpeted by both sides.

Vying For Crude

China wants to pay less for the gas and it is unclear whether Russia has enough crude to satisfy China and Japan, which have been vying for supplies.

Moscow has flip-flopped over which of these Asian rivals should get the first pipeline connection.

But Russia may be willing to make some energy concessions to China as Moscow seeks to diversify markets and investment, said Nicklas Norling, a researcher at Uppsala University in Sweden who has studied their relations.

''Energy is a source of tension but also potential cooperation,'' he said. ''Russia's growth depends on energy, but China is increasingly dependent on energy imports, and more concessions are possible.'' Putin will also hope that Hu will buy more Russian-made military hardware as China drives ahead with defence modernisation, Norling said.

''Russia needs to keep its military industry floating, and China is really important to doing that,'' he said.

Beijing and Moscow often align against Western nations on international issues. But they are also jostling for influence in Central Asia, once Moscow's backyard and now an increasingly important market and resource supplier for China.

Hu said the Shanghai Cooperation Organisation, a Chinese-founded regional group that includes Russia and Central Asian countries, has ''immense potential'' to improve cooperation in the region.

Reuters