At stake is where Siberian petroleum products go to: Nakhodka with a trunk to China as the Japanese are keen on or to Daqing as China prefers.

Speaking to reporters Putin said, “Crude exports to China and the development of transportation infrastructure including pipelines are expected to be core issues in negotiations between [Russia and China].”

“The development of oil reserves in Russia’s far east must include wide-ranging investment projects that will stimulate exploration work in the region as well as covering pipeline construction. I think you would understand if I say openly that first of all we should take into account our national interests,” he added.