In 1999, China and Russia began negotiations over an oil pipeline that would transport Russian oil from Siberia to northeast China. The proposed pipeline would stretch more than 4,000 km; while it is under construction, Russia will continue to transport oil to China by railway. "This is a win-win result for both countries," Pang said.

Pang said the agreement was motivated by the current world economic situation, as well as falling oil prices. As the U.S. and European economies stumble, global oil demand has decreased rapidly. In response, members of the Organization of the Petroleum Exporting Countries have taken measures to stabilize oil prices. In late October the organization announced it would cut daily production by 1.5 million barrels.

Oil-rich Russia urgently needs a stable market, since its economy relies on oil exports. "Considering its tense relationship with Western countries, whose oil demands have also decreased with the deteriorating economy, Russia must seize a giant and stable oil consumer like China," Pang said.

China is now the second biggest oil consumer in the world, and its energy needs are only expected to increase. If China can secure a stable oil supply in a contract agreement, it will have a strong energy safety net for future economic development, Pang said.

The two sides also decided to enhance cooperation in electric power. According to a Xinhua report, Russia will resume selling electric power to China in the border region. In addition, the two sides will enter the second phase of the Tianwan Nuclear Power Plant and cooperate in researching nuclear technology, including nuclear enrichment and nuclear waste disposal. The Tianwan plant, located in Lianyungang City, Jiangsu Province, is the largest economic and technological project between China and Russia. The plant is expected to generate 14 billion kwh annually for 40 years.

During his visit to Kazakhstan, Premier Wen met with President Nursultan Nazarbayev and Prime Minister Karim Massimov to discuss bilateral, regional and world issues.

Regarding the global financial crisis, Premier Wen reiterated that China is ready to work with Kazakhstan in offering mutual support and combating the crisis. He said that China supports cooperation between enterprises from both sides to ease the impact of the financial turmoil.

The two sides issued a joint communiqué during the visit to promote their bilateral strategic partnership and deepen cooperation in various fields. In the communiqué, Kazakhstan reaffirmed its support for the Chinese Government on the issues of Taiwan, Tibet and the crackdown on the "three evil forces" of terrorism, extremism and separatism. According to the agreements the two countries signed, they will step up their efforts against smuggling, drug trafficking, cross-border crime and organized illegal immigration.

Cooperation in the SCO

The SCO is an intergovernmental organization founded in Shanghai in 2001. The six member states-China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan-are joined by four observer states, Pakistan, India, Iran and Mongolia. At the Dushanbe summit in August, heads of state agreed to further boost the bloc's cooperation in politics, security, economy and culture. The task of the seventh prime ministers' meeting in Kazakhstan was to fully implement the consensus reached at the summit.