Transcript of the beginning of meeting:

Vladimir Putin: Dear Mr President, ladies and gentlemen. Mr Hu has had a busy schedule today, and we will have more work to do tomorrow.

You've come all the way from Kazakhstan, haven't you? And there, too, you were quite busy. But the point was precisely to receive you in such a businesslike atmosphere.

The dialogue on energy constitutes an essential part of our cooperation, and we wanted to show you one of our energy giants. I hope the demonstration has been impressive. If we manage to reach an agreement, it will lend an additional boost to the development of our economic ties. The latest results are quite positive, and they indicate that we could do well in the years to come. We could bring our turnover up to 100 billion by 2015 and double that figure by 2020. The People's Republic of China outstripped Germany to become our largest trade partner last year.

Welcome, Mr President.

Hu Jintao (speaking via interpreter): Mr Putin, you are a long-time friend of the Chinese people and a long-time friend of mine. The two of us had a meaningful conversation in Moscow last May during festivities to mark the 65th anniversary of the victory over Nazi Germany in Europe. And it's a great pleasure for me to meet with you again in Moscow one year later. Prime Minister Wen Jiabao sends you his greetings. He's looking forward to meeting with you later this year.

It's been ten years since the Chinese-Russian Friendship and Cooperation Treaty was signed. Over the past decade, you've attached unflagging importance to Chinese-Russian relations and have been making great efforts to advance them. I truly appreciate that. The settlement of the Chinese-Russian border dispute is now history. The creation and development of the Shanghai Cooperation Organisation, the promotion of Chinese-Russian cooperation in military technology, the construction of a Chinese-Russian oil pipeline, and other large collaborative projects – all these areas have benefited from your personal support and assistance. The government and the people of China appreciate your meaningful contribution to the development of Chinese-Russian relations. The world is facing dramatic changes these days. Our two countries show great potential for further development. We just hope you carry on in your efforts to advance Chinese-Russian relations, strategic interaction, and partnership. I heard you deliver a government report to the State Duma on April 20. In that report, you set strategic tasks for Russia's development in the decade ahead. The Chinese leadership supports your ambitions to make Russia a stronger country with its own agenda. We hail your efforts to uphold Russia's sovereignty, protect its security, and safeguard its national interests.

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Before the talks, Prime Minister Vladimir Putin took Chinese President Hu Jintao on a tour of Gazprom's main office in Moscow

Gazprom's chief, Alexei Miller, showed the dignitaries around, briefing them on the Sakhalin-Khabarovsk-Vladivostok gas pipeline project, which has a design capacity of 30 billion cubic metres. The pipeline, currently under construction, is to be completed in September. The construction of one other pipeline leading to Vladivostok will be underway in 2012. This project's capacity is set at 60 billion cubic metres.

During the visit, Mr Putin and Mr Hu were shown a map with existing and prospective gas pipelines. Mr Putin used the map to chart the North Stream and South Stream routes for his Chinese guest.

The Russian prime minister explained that the North Stream will consist of two branches with a total capacity of 55 billion cubic metres.

"We're now planning to build a new South Stream pipeline across the Black Sea bed," Mr Putin said. He added that Russia already has one undersea gas pipeline, running through Turkey, with a capacity of 16 billion cubic metres.