Beijing (AsiaNews) – "It was a meeting where important decisions were made," Russian President Vladimir Putin said after his talks with China's President Hu Jintao. At the end of their meeting the two signed several important agreements, some of them settling 40-year border disputes. One involves sovereignty over disputed islands on the Amur and Argun rivers on the eastern stretch of the Sino-Russian border. "The border runs through the islands and the water pumping station remains on the Russian side". Next year, Moscow and Beijing are scheduled to review the agreement.

Putin stated that "the decisions taken will enhance cooperation between the two parties in developing natural resources and formulating economic plans". According to Yakov Berger, director of the Institute of Oriental Studies at the Russian Academy of science, "the border deal was the basis for every progress in the political, economic and cultural relations between the two countries".

The Russian President stated that he was hopeful that bilateral cooperation would grow. China's Deputy Prime Minister Wu Yi said "that commercial and economic relations have a promising future".

The two parties also signed agreements in which China pledged her support for Russia's application to the World Trade Organisation.

However, no progress was made concerning the controversial Siberian pipeline. Russia's Minister of Economic Development and Trade German Gref said that the choice about which of the two pipeline routes proposed will be made "before the end of 2004".

According to the Russian government, Sino-Russian trade is expected to reach US$ 60 billion per year by 2008. Currently, it stands at just US$ 15.3 billion representing less than 2 per cent of China's foreign trade.