Chinese President Hu Jintao and visiting Russian President Vladimir Putin agree "bilateral relations are at an unprecedented level of development" as the two leaders commended the fruitful cooperation achieved under the ten-year-old Sino-Russia strategic partnership of cooperation.

Putin, who arrived here on Tuesday morning, held talks with Hufor two hours in the Great Hall of the People before witnessing the signing of a series of agreements, including an over arching document titled the China-Russia Joint Statement.

Of the 15 agreements, three concern future cooperation on oil and natural gas projects. No specific deal was reached on the construction of an oil pipeline.

China and Russia encourage companies from both nations to invest in oil and gas exploration in order to tap the energy potential of both nations, according to the statement.

Noting that China is Russia's fourth largest trading partner, Putin said Russia was "very satisfied with bilateral trade ties."

There still exists huge potential in bilateral trade cooperation, Putin said. "China-Russia trade volume will surely meet the set goal of 60 to 80 billion U.S. dollars in 2010."

This is the fifth meeting between the two heads of state in thelast 12 months.

Other senior Chinese and Russian leaders also frequently exchanged views through a series of high-level consultations, which Hu said "helps the two countries coordinate on major issues concerning their fundamental interests."

Another item high on the agenda of Putin's two-day state visit was inaugurating the Year of Russia in China, which involves more than 200 activities.

Putin said the hosting of Year of Russia shows that the currentRussia-China relations have reached "a very high level and will lay a better foundation for their future development."

Hu and Putin also exchanged views on a wide range of heated international issues, covering the Iran nuclear standoff, the Korean nuclear issue, Palestine-Israel disputes, central Asian andIraqi issues.

They also vowed to step up coordination within the framework ofthe Shanghai Cooperation Organization (SCO), which includes as members Russia, China and four Central Asian states -- Kazakhstan,Kyrgyzstan, Tajikistan and Uzbekistan.

"China and Russia believe the development of the SCO is an important task of their diplomatic work and continue to closely coordinate their positions within the SCO," the statement says.

"The two countries will continuously exchange views on major international issues through various channels," the statement says.

Putin was accompanied by a delegation of about 90, many of whomare key Russian entrepreneurs in the fields of energy, banking, telecommunications, media and other industries. They are expected to exchange views with their Chinese counterparts.

During Putin's stay in Beijing, a Sino-Russian economic and trade summit will be held and the two sides will launch a series of business activities in a bid to boost trade and investment.

Putin ended the first day of his visit by attending the premiere of the Year of Russia at the Great Hall of People.