Russia expects China to open market to winter wheat, barley, fuel pellets - Reshetnikov

BEIJING. Sept 29 (Interfax) - Russia has prepared a number of initiatives to increase trade with China, and is counting on the country to open its market to imports of Russian fuel pellets and lift restrictions on imports of winter wheat and barley, Economic Development Minister Maxim Reshetnikov said.

"The trade turnover [between Russia and China] set a record last year, exceeding $244 billion. Now we are looking for mutually beneficial decisions together so that this figure continues to grow further. On our part, we have prepared several initiatives: to lift restrictions on shipments of Russian winter wheat and barley, and open the Chinese market to our environmentally friendly fuel pellets," the Economic Development Ministry reported Reshetnikov as saying at a meeting of the sub-commission for trade and economic cooperation in Beijing on Sunday.

He said China classifies pellets as waste, so they cannot be imported at this point, but "we understand that this is environmentally friendly fuel and we have supplied and supply it to various countries in the world," so this issue will be worked out.

"Potential trade just for this item is estimated at $250 million," Reshetnikov said. "As soon as we open this market [China], our wood processors will have the opportunity to reduce prices for other products and become more competitive, so this is extremely important for us," he said.

The construction of the Power of Siberia 2 gas pipeline, with capacity to transport 50 billion cubic meters per year, will also support the development of trade, Reshetnikov said.

He also said that direct Chinese investment in Russia grew by 13% last year. New joint investment projects are being launched in various sectors, including the chemical and metal industries, infrastructure, automobile manufacturing, agriculture, logistics and information technology, among others.

Russia and China signed a new agreement on promotion and mutual protection of investment during a meeting between the two countries' leaders in May.

"The Russian side plans to complete all the necessary procedures for the agreement to go into effect by the end of this year," the Economic Development Ministry said.