Putin solves all problems Russia had with China

During his visit to China, Vladimir Putin managed to come to an agreement regarding the payments for the Russian oil. Officials with the Russian administration believe that China was not paying the full price for the Russian oil. According to them, China was keeping $3 from every barrel. Chinese officials claim that those were "transportation costs."

Photo: AP photo

Putin solves all problems Russia had with China. 45591.jpeg

It became known today that the two sides had come to an agreement regarding the problem. The conditions of the agreement have not been unveiled, though.

It became Putin's first visit to China after he announced his intentions to run for presidency. In China, Russia's sitting prime minister stressed out the high level of cooperation between the two countries in political and humanitarian fields.

"We do not have any problems in the political and humanitarian fields at all. We have achieved a very high, an unprecedentedly high level of our interaction," Putin stated.

The conflict of the interests between Moscow and Beijing was about the economic field, particularly about the deliveries of Russian oil.

"Those who sell, they want to sell at a higher price. Those who buy, they want to buy at a lower price. We've always managed to achieve the compromise that would be good for both sides," Putin said.

The problem appeared between Russia and China in February 2011, when China was short in its payment for the Russian oil. China's payment was short $25.6 million. In return to Russia's claims, Chinese officials said that the above-mentioned amount was their "fee" because the price did not include transportation costs.

Russia's Vice Prime Minister Igor Sechin stated that the two sides had regulated the problem. However, it is still unclear how the problem was solved. Sechin only said that Beijing would repay the debt in accordance with the documents that would be signed by the officials representing the companies of this cooperation.

In addition, the sides will discuss the deliveries of Russia's natural gas. For the time being, the share of gas in China's fuel consumption is very low - not more than eight percent. China basically lives on coal and oil. China presumably buys natural gas from Kazakhstan. However, the Celestial Empire will need more gas in the future.

According to experts' estimates, China may purchase 75-80 percent of Russia's gas import. However, Russia insists on the average European price of $350 per 1,000 cubic meters. China insists on another price - $250.