Russia And China To Dump US Dollar For A New Currency Order

[Mrs. Sharon B. Hodge]

Russia and China have signed a long-awaited deal to build an oil pipeline from Siberia to China after talks between Prime Minister Wen Jiabao and Russian counterpart Vladimir Putin, seen here in Moscow


October 28, 2008 Chinese Premier Wen Wen Jiabao and Russian counterpart Vladimir Putin meet in Moscow

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PM Putin suggests Russia, China ditch dollar in trade deals
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RIA Novosti
10/ 28/ 2008

http://en. rian. ru/russia/20081028/117991229. html

MOSCOW, October 28 (RIA Novosti) - Russian Prime Minister Vladimir Putin proposed on Tuesday that Russia and China gradually switch over to national currency payments in bilateral trade, expected to total $50 billion in 2008

"We should consider improving the payment system for bilateral trade, including by gradually adopting a broader use of national currencies," Putin told a bilateral economic forum

He admitted the task would be tough, but said it was necessary amid the current problems with the dollar-based global economy

Chinese Prime Minister Wen Jiabao described strengthening bilateral relations as "strategic"

"Mutual investment by Russia and China has already exceeded $2 billion, this is a very good index," Jiabao said

He praised the success of numerous projects, including additional construction of China's Tianwan nuclear power plant and the opening of a joint pharmaceuticals center in Moscow

A number of large Russian companies, including state-run oil producer Rosneft and aluminum champion RusAl, are seeking to develop investment projects in China, Jiabao said

The Chinese premier said bilateral cooperation in the helicopter industry, mechanical engineering, the energy sector, timber production and innovation sector was also showing signs of progress

"China is a staunch supporter of Russia's accession to the WTO, but is categorically against politicizing the issue," Jiabao said

The Russian premier invited Chinese investors to join Russian timber projects

"We welcome both domestic and foreign investment in Russia's timber sector," Putin said.
"As one of the largest consumers of our products, China could be a source of such investment"

He also offered Beijing Russia's assistance in developing a large passenger plane on the basis of Russia's experience with its wide-bodied Il-96 aircraft


Russian Prime Minister Vladimir Putin, right, and his Chinese counterpart Wen Jiabao take part in Third Russian-Chinese Economic forum in Moscow's President Hotel Tuesday, Oct 28, 2008

Liu Yandong, Chinese State Councilor, Wang Qishan, Chinese Vice Premier, Chinese Premier Wen Jiabao, Russian Prime Minister Vladimir Putin, Vice Premier Alexander Zhukov, and Igor Sechin, Vice Premier, from left, sit during Third Russian-Chinese Economic Forum in Moscow's President Hotel on Tuesday, Oct 28, 2008



Chinese Premier Wen Jiabao (L) and Russia's President Dmitry Medvedev meet for talks in Moscow October 28, 2008

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Chinese premier hails economic relations with Russia
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(Xinhua)
2008-10-29

http://www. chinadaily. com. cn/bizchina/2008-10/29/content_7152413...

Chinese Premier Wen Jiabao on Tuesday hailed the significant progress made in the economic and trade cooperation between China and Russia in recent years

Addressing the third China-Russia Economic and Trade Summit Forum in Moscow, Wen said both China and Russia are emerging economies that have important impact on the world

Strengthened cooperation in economy and trade between the two sides are conducive to the all-round development of relations between the two countries, as well as to promoting prosperity and stability of the world economy, he said

The scale of bilateral trade has expanded with an upgraded trade structure, with the China-Russia trade volume rising nearly 10 times between 1998 and 2007 and expected to exceed $50 billion this year, said Wen
The target of $60-80 billion in bilateral trade by 2010 set by both sides can be met, he said

Meanwhile, the trade structure between the two countries has been upgraded over the past years, said Wen

Russian exports of mechanical and electrical products to China have been increasing continuously in the past two years, and the two sides have kicked off new projects in such sectors as helicopter, metallurgy and machinery, said Wen

The two nations have also stepped up cooperation in energy and natural resources, said the premier

China, with a steady and vast market demand, has offered enormous potential for Russia in implementing its strategy of diversifying energy export, he said

The energy negotiation mechanism between the two countries has pushed bilateral cooperation in oil and gas, nuclear energy and electricity into a "fast lane," Wen said

China and Russia have boosted cooperation in forestry, mining, as well as refinery, he noted

The two sides have also witnessed continuously deepened cooperation in high-tech fields such as manned space missions, Mars exploration, information and communication, energy-saving and environmental protection, said Wen

Those cooperation has played an active role in improving the industrial structure and promoting the growth of an innovative economy in both countries, Wen said

Currently, the two sides are conducting all-round cooperation in the basic research, applied research and industrialization in such priority areas as nanotechnology, life system, and the utilization of natural resources, by way of establishing research centers and industrial demonstration bases, he noted

Meanwhile, mutually-beneficial cooperation between enterprises of the two countries has been increasing, with the total accumulative investment between the two sides amounting to over $2 billion, Wen said

Major joint projects such as the Tianwan Nuclear Power Station, the Baltic Sea Pearl and the Chinese Trade Center in Moscow, are all in sound operation, he said

Russia's Rusal, SystemGroup and Rosneft Oil Company have either already established big projects or prepared to invest in China, Wen noted

And Russian consumers have become increasingly inclined to choose China-made communication equipment and household apparatus, he said

The Chinese premier arrived here on Monday for an official visit aimed at strengthening China's strategic partnership with Russia

Russia is the first leg of Wen's two-nation tour, which will also take him to Kazakhstan on Wednesday

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Wen calls to establish new int'l financial order
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Xinhua
Oct 29, 2008

http://www. china. org. cn/business/news/2008-10/29/content_1668201...

Visiting Chinese Premier Wen Jiabao is calling for the establishment of a new international financial order in the face of the global financial crisis

The premier made the appeal in an address at the opening ceremony of the third China-Russia Economic and Trade Summit Forum in Moscow

Confidence and cooperation are more precious than gold or any currencies in the face of the current crisis, as confidence is the source of strength while cooperation is the effective approach to overcoming the crisis, Wen said

Wen said that to stabilize the global financial market, developed countries should shoulder their due responsibilities and obligations, and implement more effective polices to stabilize their own markets and the global financial market

Other countries should adopt appropriate macro-economic policies to stabilize their economies, financial markets and capital markets, he said

The international community should join hands to boost the development of the world economy and give particular attention to the reduction of the crisis's damages to developing countries, especially to least developed countries, said the Chinese premier

Wen said that to maintain a stable and relatively rapid development of its economy is the biggest contribution that China, a large developing country with a 1.
3 billion population, makes to the world

With a responsible attitude, China will continue to play an active role and make joint efforts with the rest of the international community to handle global challenges such as the financial crisis, he said

Citing the old saying "better late than never," the Chinese leader said lessons should be learned from the turbulence

He appealed for an appropriate handling of the relationship between consumption and saving, between fictitious and real economies and between financial innovation and supervision

To establish a new international financial order is a pressing matter as required and favored by the current situation, he said

He suggested that the system of international financial institutions be improved, so that they can effectively play their roles in safeguarding global and regional financial stability and strengthening financial supervision

Emerging and developing countries should be given a greater right to know, stronger say and more rights to formulate rules in these blocs, Wen said

He also called for the reform of the global financial supervision mechanism, saying rational and effective financial regulatory standards should be formulated, and a good and effective warning system and a risk-prevention system should be formed

The supervision on those countries whose currencies make up others' foreign reserves should be boosted in particular, said Wen

He also appealed for the acceleration of the establishment of a multi-currency international monetary system, noting the roles of various currencies should be brought into play to jointly shore up the world monetary system

The premier also briefed China's economic situation, saying the Chinese economy is enjoying a basically good momentum of development

China's national economy has maintained a stable and relatively fast development, with its financial system healthy and stable, the upward trend of prices under control, employment increasing and the food output witnessing a surge for five consecutive years, he said

And new progress has been scored in China's economic restructuring, energy saving and emission reduction, China's reform and opening-up continues to be deepened, and its social construction that focuses on improving people's livelihood has been enhanced, Wen said

China's economic development is able to resist risks and enjoys a strong vigor, said the premier

"We are fully confident about China's economic development and financial stability," he said

Wen arrived in Moscow on Monday for a three-day official visit aimed at strengthening China's strategic partnership with Russia

He will also visit Kazakhstan and attend the 7th prime ministers' meeting of Shanghai Cooperation Organization member countries in Astana, capital of Kazakhstan

(Xinhua News Agency October 29, 2008)



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Russia, China sign landmark oil pipeline deal
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AFP News
Oct 28, 2008

http://www. breitbart. com/article. php?id=081028133121. m43iggtc&a...

Russia and China on Tuesday signed a long-awaited deal to build an oil pipeline from Siberia to China after talks between Prime Minister Wen Jiabao and Russian counterpart Vladimir Putin
The leaders watched as Chinese state energy major CNPC and Russian state pipeline monopoly Transneft signed the deal to build the pipeline from the Siberian town of Skovorodino to the Chinese border

The pipeline agreed on Tuesday would have a capacity of 15 million tons of oil per year and would be a branch of the main East Siberia-Pacific Ocean trunk pipeline, which is still under construction, officials said

"We should deepen cooperation in the energy sphere.
Long-term cooperation will help economic development and stability on world markets," Wen said at the opening of a Russia-China business conference with Putin in Moscow

Even after lengthy negotiations on energy ties between the two neighbours, Russia is still only the fifth-largest exporter of crude oil to energy-hungry China, despite being the world's number two producer after Saudi Arabia

Amid lower energy prices, analysts say China is now seizing its chance

"We have to aim for real results.
We've discussed this for many years but the results do not correspond to what they should be for two neighbouring powers," Zhang Guobao, China's top energy official, told the conference


"We need to build oil and gas pipelines, increase downstream and upstream cooperation and increase cooperation in the nuclear sphere," said Zhang, head of China's State Energy Bureau, speaking through a Russian interpreter

The length of the pipeline to the Chinese border would be around 70 kilometres (44 miles).
The pipeline is then planned to link into the Chinese pipeline network to reach the oil hub of Daqing in northern China

Russian newspapers on Tuesday also reported that talks were underway for a multi-billion dollar credit from the Chinese government to Transneft and Russian state-run oil company Rosneft that would help boost energy exports

The Vedomosti daily quoted Sergei Sanakoyev, a government expert, saying Moscow and Beijing had agreed a contract to supply China with 15 million tons of oil per year in exchange for up to 25 billion dollars (20 billion euros)

But Vedomosti also quoted an official saying there was no deal yet

"The question of credits for Rosneft and Trasneft was discussed into the evening.
" If no agreement is reached on Tuesday "then the signing of the deal on oil supplies could be delayed," the official was quoted as saying

The Kommersant daily quoted a source close to the management of Rosneft saying on Monday: "There is no final agreement but we are oriented on these parameters.
We have the whole night ahead to find an agreement"


Rosneft, Russia's biggest oil producer, has been hit by the financial crisis because of a slide in Moscow's stock markets and its massive exposure to foreign loans that it has used to expand the company in recent years

During his visit, Wen also said that Russia and China could help boost global economic stability through greater cooperation

"Russia and China are growing economies with major influence in the world... They can help strengthen the world economy," Wen told investors in Moscow

"We should strengthen ties, look together at anti-crisis measures and coordinate macroeconomic policy," he added.