Vietnam, Russia enhance ties, energy cooperation put among pillars

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Linh Pham 21:30, 2019/05/23

Oil and gas, nuclear energy are at the central point of the talks.

Vietnam’s Prime Minister Nguyen Xuan Phuc and Russia’s Prime Minister Dmitry A. Medvedev held working talks in Moscow on May 21 with a focus on oil and gas, nuclear, defense and security.

Vietnam’s Prime Minister Nguyen Xuan Phuc and Russia’s Prime Minister Dmitry A. Medvedev in Moscow. Photo: VGP

They affirmed energy remains one of key pillars in the bilateral relations, saying that the two sides would support both Vietnamese and Russian firms in the exploration and operations of oil and gas in Vietnam’s continental shelf and in Russia’s territory.

Companies at the center of attention include Zarubezhneft, Gazprom, Novatek, Rosneft, among others.

Rosneft in May 2018 started drilling at the LD-3P well, part of the Lan Do “Red Orchid” offshore gas field in Block 06.1, which is 370 km southeast of Vietnam. China’s U-shaped line marks a vast expanse of the South China Sea that it claims, including large swathes of Vietnam’s Exclusive Economic Zone. Maps of the area indicate the block is around 85 km inside the contested area, according to Reuters.

Vietsovpetro, a joint venture set up in 1981 with a 51% stake held by PetroVietnam and 49% by Russia’s wholly state-owned Zarubezhneft, operates in petroleum exploration and production on the southern continental shelf of Vietnam.

The company exploited 4.74 million tons of condensate and 234 million cubic meters of natural gas, earning revenue of US$1.97 billion in 2017, up 3.5% on year. In the 2015 visit, Medvedev said that the two countries would continue running the joint venture for a long time, at least until 2030.

In terms of nuclear energy, Medvedev said that both the countries need to make efforts to speed up the building of the Center for Science Research and Nuclear Technologies.

In Medvedev’s visit to Hanoi in November 2018, the two sides agreed to build a nuclear technology research center worth US$350 million.

In early 2000s, Vietnam and Russia eyed nuclear power projects which were expected to begin construction in the Vietnamese central province of Ninh Thuan. In 2011, the Russian government pledged to lend Vietnam US$8-US$9 billion for the construction.

In November 2016, the Vietnamese National Assembly rejected the nuclear power projects, saying that the country should focus on key programs like the north-south express railway, urban railways, coastal infrastructure, and airports. The Vietnamese government at that time affirmed that construction technologies or safety were not among reasons for the halt of the nuclear power projects.

Efforts for enhanced ties

The two government leaders discussed a series of issues of mutual concerns and relating to peace, stability, and freedom of air and maritime navigation in the Asia-Pacific, including the South China Sea, to which Vietnam refers as the East Sea.

Vietnam highlighted Russia’s important role in contributing to the regional and global peace maintenance.

Other sectors namely defense, security, science, education, culture, tourism, and locality friendship were also mentioned in the talks.

For stronger economic ties, Medvedev said Russia wanted to add pharmaceuticals and medical equipment to staples exporting to Vietnam. He said Russian companies are willing to supply the products at competitive prices. Russia firms will also pay attention to infrastructure and urban railway projects in Vietnam.

The two PMs agreed with some measures to boost labor supply, stressing the potential of this sector.

Some important agreements on nuclear energy, oil and gas, construction, tourism, justice, and locality partnership were signed in the presence of the two PMs.

During the visit, the Vietnamese PM thanked the Russian government for facilitating the Vietnamese community in Russia and the training of more than 50,000 Vietnamese students over the past decades. Currently, dozens of thousands of Vietnamese students are learning in Russia.

Next year, the two countries will commemorate in both countries the 70th anniversary of the establishment of diplomatic ties.

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