BEIJING - Russian Prime Minister Mikhail Fradkov closed out a visit to China Friday that was highlighted by announcements of increased energy links between the two Asian powers.

Chinese President Hu Jintao (R) receives visiting Russian Prime Minister Mikhail Fradkov during a meeting at the Great Hall of the People in Beijing November 10, 2006. [Reuters]

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Fradkov held talks with President Hu Jintao at the end of a two-day visit that marked the close of the promotional "Year of Russia in China," but that was overshadowed by an announcement from Russian oil exporter OAO Rosneft, which said it is ready to increase shipments to China by up to 65 percent next year.

But there was no word of progress on a planned pipeline to deliver Siberian crude.

Rosneft President Sergey Bogdanchikov said the company was ready to boost oil exports to China to 140 million barrels next year, up from an expected 85 million barrels this year.

The two sides have not signed a contract yet on increased supplies, Bogdanchikov, who was visiting Beijing with Fradkov, said at a news conference.

Hu praised Fradkov's visit, saying it would promote better links between China and Russia, the world's second-biggest supplier of oil after Saudi Arabia.

"I believe that your visit will deepen cooperation between the two countries and push forward our strategic partnership," Hu said.

"Russian President Vladimr Putin has asked me to pass his regards to you and tell you that he is very much awaiting the meeting with you in the middle of the month in Hanoi," Fradkov said.

Putin and Hu will both be at the November 18-19 Asia-Pacific Economic Cooperation summit in Hanoi.

The oil deal on Friday comes a day after Bogdanchikov said Rosneft - which accounts for about 70 percent of Russia's oil exports to China - and China National Petroleum Corp. had agreed to build a refinery in China.

The agreement extends a partnership between Rosneft and CNPC, both state-owned, that includes earlier plans to open filling stations in China and to produce oil in Russia.

The refinery will have an annual capacity of 70 million barrels.

The deal marks the latest tie-up between the companies after CNPC bought a US$500 million slice of Rosneft's US$10.4 billion midyear initial public offering.

Officials from both countries are projecting bilateral trade to hit US$60-US$80 billion by 2010. Bilateral trade totaled US$29.1 billion (euro22.78 billion) in 2005, and had reached US$24.64 billion (euro19.29 billion) in the first nine months of this year, up almost 20 percent from the same period a year earlier.

Besides oil, China buys Russian weapons, while Russia's imports of Chinese-made appliances and other consumer goods have been rising.

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