Putin visit fails to produce pipeline deal

Russian President Vladimir Putin's state visit to China secured pledges of more than US$12 billion in investment for the Russian economy, but no agreement on the construction of two gas and oil pipelines, much to the frustration of his hosts, reports said. Beijing had been pressing for an agreement on the two pipelines one to supply natural gas from eastern Siberia, and another to pump oil from western Siberia to Chinese refineries as a way of filling a growing gap in supply. However, Japan is also competing for the pipelines to supply its own energy needs and is offering investment pledges as an incentive. Putin has said that Russian interests would come first in deciding the eventual location of the pipelines.