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Mikhail Fradkov issued a decree on the last day of 2004
Russian Prime Minister Mikhail Fradkov issued a decree on the last day of 2004 approving the final route of the unified East Siberia-Pacific Ocean oil pipeline. It will run through the town of Taishet, Irkutsk region, the town of Skovorodino, Amur region, and the Perevoznaya bay, Maritime Territory. The approved route does not envisage a branch to China. "It is up to China to advance a relevant initiative," Stanislav Naumov, the Russian industry and energy minister's press spokesman, told Kommersant yesterday. This means Russia does not want to finance the construction of the branch and is waiting for China's decision on the matter. At the same time, this does not mean that Russia is not interested in exporting Siberian oil to China, according to Mr Naumov. "Oil produced in the Perevoznaya bay can be pumped to any recipient, including China," said Mr Naumov. The sources to finance the construction of the main pipeline have been identified already. The pipe will be built at the expense of receipts from pumping oil through Transneft's system. The pumping tariff will be $47 per tonne and once the loans to be taken for the construction of the pipe have been repaid it may be reduced twofold. The project will be implemented in several phases. The construction of the Taishet-Skovorodino section will be the first phase. The construction of an oil terminal in the sea port of Nakhodka, where oil produced at Skovorodino will be delivered by rail, will coincide in time with the first phase. The second phase envisages the construction of the Skovorodino-Perevoznaya section. It will be launched when oil producers start the commercial development of oil fields in East Siberia and Yakutia. The raw materials resource base is 24 million metric tonnes of oil in West Siberia and 56 million metric tonnes in the fields in East Siberia and the Republic of Sakha (Yakutia). However, these are largely undeveloped reserves. The Nature Ministry, the Industry and Energy Ministry and the Economic Development and Trade Ministry are expected to approve the phases before May 1, 2005. The pipeline's overall capacity may reach 80 million tonnes of oil a year, and the project will require close to $16 billion in investment. The project is to be completed in 2008. japanese foreign minister to discuss peace ...
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