Putin visits China: $5.5bln in deals expected

12 October, 2009, 22:14

Russia and China are set to seal deals worth more than five billion dollars in energy, infrastructure and telecoms. Prime Minister Vladimir Putin is leading a high-powered delegation to the eastern country.

Around a hundred top Russian business leaders form the delegation, hoping to win a bigger slice of one of the world’s largest markets.

Read more

Putin will meet with his Chinese counterpart Wen Jiabao during his visit, as well as China’s President Hu Jintao, and will take part in a meeting of the Shanghai Cooperation Organization (SCO).

Russia is looking to expand machinery exports to China, but also to increase yuan-ruble trade, which soared to 58 billion dollars in 2008 from just over 9 billion in 2002. So, it’s obvious the growth of trade between the two countries is tremendous.

This comes following recent rumors that Gulf states are going to try to dump the dollar, perhaps with Russia and China joining in, as the currency used for oil transactions.

However, dropping the dollar as the key trading currency, which would be of interest for the Russia-China partnership, isn’t realistic, believes Natalia Zaderey from the Institute of Far Eastern Studies in Moscow.

The meeting is expected to focus on the strengthening of humanitarian and economic cooperation between the SCO member states, including their cooperation in overcoming the consequences of the global financial crisis.

Heads of Government of the SCO member states are also to discuss joint projects in the transport, energy, information and telecommunication spheres.

The SCO, founded in 2001, consists of Russia, China and the ex-Soviet republics of Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.