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Russian President Vladimir Putin is expected to discuss the possibility of extending the Siberia-Pacific coast oil pipeline to China when he meets President Hu Jintao in Beijing next week, the Russian ambassador said yesterday.

The two leaders will also talk about bilateral trade and energy co-operation as well as the nuclear disputes involving Iran and the Korean Peninsula, Sergei Razov said.

The ambassador made the remarks at a joint news conference with Assistant Foreign Minister Li Hui organized by the State Council Information Office in Beijing.

"Corporations from both countries are conducting pragmatic negotiations on the construction of a pipeline to carry Siberian oil to China," Razov said.

Russia has decided to build a US$11.5 billion pipeline to be completed by 2008 from Siberia to the Pacific coast to supply Japan and the Republic of Korea; and is considering a branch to China.

"I think we all agree that a big project like this requires a full and thorough survey," Razov said. "During President Putin's visit, the two sides will continue discussions on this matter."

Putin will be on a state visit on March 21-22.

"Given the surging demand of energy prompted by China's rapid economic growth, Russia would like to increase energy co-operation oil and natural gas in particular with China," Razov said.

Russia, the world's second-biggest oil exporter after Saudi Arabia, plans to ship 15 million tons of crude an increase of 25 per cent to China by rail this year.

Russia is also studying the possibility of exporting natural gas to China, he said, adding that energy co-operation was of "key significance."

The two countries aim to raise bilateral trade to US$60-80 billion by 2010. Last year, trade volume reached nearly US$30 billion, up 37 per cent from the previous year, according to Razov.

"Compared with China's trade figures with some other countries, it may not be a very big figure, but what matters most is the momentum of rapid growth," he said.

Analysts say Russia's export structure is imbalanced, which is demonstrated by the year-on-year decline of electric and mechanical products in the proportion of exports to China, which is a hurdle to even more robust growth.

"This has caused serious concerns for the Russian side," Razov said. "The proportion of value-added products shipped to China should be increased."

To promote the development of their strategic partnership, the two countries will celebrate the Year of Russia in China this year. Putin and Hu will jointly inaugurate the event in Beijing next week.

(China Daily March 17, 2006)