What does China-Russia partnership mean amid oil, trade tensions?

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The China Russia Energy Business Forum was one of the biggest events at the St. Petersburg International Economic Forum (SPIEF) this year. Chinese President Xi Jinping and Russian President Vladimir Putin each gave a speech at the event, confirming a relationship that's stronger than ever.

Energy cooperation is at the center of China-Russia ties at this point, as both presidents reiterated the high stakes in jointly investing in oil and gas.

“In the face of changing circumstances, teamwork and win-win cooperation are the correct choices for all parties. Across the world, sustainable development is the greatest common denominator for global cooperation,” Xi said.

“There are negotiations on suppliers of natural gas from the Far East of Russia through the Western world and there is a high demand on Russia coal electricity in China,” Putin said.

Oil prices were volatile last week but both global and U.S. crude benchmarks are showing a bear market, and the increasing U.S. production is not helping with the situation. Prices are 20 percent lower than their peak in April. That could be a huge blow to Russia's economy.

Russia has made it clear that the biggest drags on oil now are sanctions and tariff wars. /VCG Photo

Saudi Arabia wants to extend production curbs beyond the expiry at the end of the month and on Friday reiterated its stance that OPEC and the non-OPEC producers should keep them going into the second half of the year.

Russia is not only committed to that plan but its largest oil producer Rosneft has already talked to the government about compensation for potential losses if the controls are extended.

Russia also made it clear that the biggest drags on oil now are sanctions and tariff wars. That means that China and Russia's energy ties will only get closer to ensure that the two countries will be stronger together in weathering economic volatility.

(CGTN's Xia Cheng also contributed to the story.)