Xi: China ready to boost energy ties with Russia

President's message to forum stresses need to safeguard stability of industry, supply chains

President Xi Jinping underlined on Tuesday China's readiness to forge an even closer energy partnership with Russia to promote the development of clean and green energy, ensure global energy security and safeguard the stability of industry and supply chains.

Xi made the remarks in a congratulatory message to the fourth China-Russia Energy Business Forum. Russian President Vladimir Putin also sent a congratulatory message to the forum.

Xi highlighted energy cooperation between the two countries as a key cornerstone of bilateral pragmatic cooperation and a positive force in upholding global energy security.

In the face of external risks and challenges, China and Russia enhanced communication and coordination and pushed forward major cooperation programs, which demonstrated the strong resilience of their energy cooperation and illustrated the broad prospects of the bilateral comprehensive strategic partnership of coordination for a new era, he said.

He called on both sides to make new contributions to the long-term, healthy and sustained development of the international energy market.

Russia continued to be China's largest source of energy imports in 2021. The nation's energy imports from Russia reached 334.29 billion yuan ($46.62 billion) last year, up 47.4 percent year-on-year, accounting for 65.3 percent of the total value of China's imports from Russia last year, according to the General Administration of Customs.

Confronted with a series of risks and challenges, companies from China and Russia have achieved new progress in energy cooperation, despite the fact that geopolitical tensions have had a negative impact on the balance of global energy supply and demand, Dai Houliang, chairman of China National Petroleum Corp, said during the forum.

During the first three quarters of this year, bilateral trade between China and Russia exceeded $136 billion, with their energy trade reaching almost $60 billion, accounting for more than 40 percent of the total, he said.

During the first nine months of this year, China's imports of crude oil from Russia increased 8.8 percent, while those of natural gas increased by 49 percent and coal imports rose by 12 percent, and major energy cooperation projects have been proceeding steadily, including the eastern route of the China-Russia natural gas pipeline and the Yamal LNG and Arctic LNG 2 projects, said Dai.

He suggested that the two countries should enhance their energy cooperation in the years to come, in order to further guarantee the secure supply of oil and gas while actively exploring green and low-carbon energy cooperation.

China and Russia share broad prospects in nuclear power cooperation, and the two nations should seize the current opportunities and strengthen high-level cooperation in the nuclear power sector, according to China National Nuclear Corp.

The two countries should come up with more low-carbon cooperation on a larger scale in more areas to further strengthen energy cooperation, Shen Lixin, deputy director general of the department of business development and international cooperation of China National Nuclear Corp, said at the forum.

Major cooperation between the two countries includes units 7 and 8 of the Tianwan nuclear power plant in Lianyungang, Jiangsu province, and units 3 and 4 of the Xudapu nuclear power plant in Huludao, Liaoning province.

An industry analyst said energy cooperation between China and Russia is expected to be further enhanced this year.

"Oil and gas trade between Russia and China will gradually increase and the current geopolitical tension will only accelerate the process," said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

"Energy cooperation between the two sides is complementary, as Russia is a major oil and gas exporter while China is a major energy importer," he said.

"China's demand for natural gas is expected to last for a long time and bilateral cooperation is set to be further enhanced," Luo said.