The talks on building an oil pipeline from Russia to China started in 1994. Since then, the plan has been delayed several times due to factors of both countries. According to the current schedule, the pipeline will be completed and put into use in autumn 2010. During his visit to Russia this June, Chinese President Hu Jintao signed a memorandum of understanding on natural gas cooperation with his Russian counterpart Dmitry Medvedev. During Russian Prime Minister Vladimir Putin's visit to China in October, China and Russia signed a road map on natural gas cooperation, deciding to launch the pipeline construction from the east and west together, which will be put into use in 2014 or 2015.

Although the two sides still disagree on prices, they have agreed to cooperate according to the signed memorandum of understanding on natural gas cooperation, according to which the two countries will promote energy cooperation in line with international market practices.

What we can be sure of is that as the two countries' energy cooperation further deepens, Russia will invest in China's downstream oil sector, such as building gas stations and oil refineries. Meanwhile, China will invest in Russia's upstream oil sector, such as oil exploitation and drilling.

Russia has formulated its energy development strategy until 2030, while China lags behind in formulating a long-term energy plan. China should accelerate its work in this field and build a foundation for long-term energy cooperation between the two countries.

We have noticed that Sino-Russian cooperation has shown some new trends. For example, the two countries' scientific and technological exchanges for the first time feature two-way instead of one-way communication. How do you view these changes?

This is a landmark. In the past, Russia always regarded itself as superior to China in science and technology, but today's Russian leaders are more pragmatic. Vladimir Yakunin, the president of Russian Railways, spoke highly of China's inexpensive and creative high-speed rail technologies after paying a visit. During the 14th regular meeting between the Chinese and Russian prime ministers held this year, China's Ministry of Railways, the Russian Federation Ministry of Transport and Russian Railways AG signed a memorandum of understanding on developing high-speed rail transport in Russia. As a milestone, it marks that the two countries' cooperation in the hi-tech field is no longer one-way.

How do you perceive the instability in economic cooperation between China and Russia in 2009?

The Chinese and Russian governments enjoy high levels of mutual trust while some disturbances exist at the people-to people level. For example, the government's shutdown of the Cherkizovsky Market in Moscow has resulted in public reactions in China. I think the Russian Government's attitude is too harsh, but Chinese vendors also need to understand that they can no longer make money from profiteering. Chinese merchants need to upgrade their operation models.

As for the trade structure, I believe that the Sino-Russian trade structure is similar to that between Russia and Europe and reflects Russia's own economic structure. To improve its trade structure, Russia should start by improving its economic structure. The Chinese Government is actively cooperating with Russia to crack down on companies involved in the practice of gray customs clearance. China is also exploring new ways of economic cooperation, such as RMB and ruble settlement in Sino-Russian trade. Another example is the cooperation between Russia's Far East and China's northeastern industrial bases is on both countries' economic development blueprints. Cooperation of this kind will raise mutual trust between the two countries to a higher level.

Finally, what do you think will be the highlights of Sino-Russian relations in the coming year?

I think three major events will bolster bilateral relations. First, 2010 will be the "Year of Chinese Language" in Russia. This event will offer Russian people opportunities to study Chinese, understand Chinese civilization and Chinese people's modern life.

Shanghai will hold a World Expo in 2010. Back in the 1950s, many Chinese people received their first impression of the Soviet Union by visiting exhibition centers and museums showcasing the Soviet Union's economic and cultural achievements in Beijing, Shanghai and Guangzhou. The Shanghai World Expo will also offer a precious opportunity for different countries to understand each other.

Both China and Russia will see their economies recover from the international financial crisis. China has done a good job of limiting the impact of the economic downturn, while Russia's economy has also started to rebound. But there is still a long way to go before Russia's economy revives to the level before the crisis and Russia completes its economic restructuring to become an innovation economy. This transformation will provide plenty of opportunities for cooperation between the two countries.