Russia to lay oil pipelines to Japan and China?

The oil pipeline that will run from Angarsk (Western Baikal) to Nakhodka (southern port on Russia's coast of the Sea of Japan) is not designed as an alternative to the "local" Angarsk-Daqing (China) pipe, said Russian Prime Minister Mikhail Kasyanov. Mr Kasyanov is staying in Japan on an official visit.

The Angarsk-Daqing project deals with oil produced and to be produced by one of Russian oil companies, while the oil pipeline to Nakhodka will serve as an incentive and give an impetus to the development of entire Eastern Siberia and the Far East, said the premier. "This project /Angarsk-Nakhodka/ is part of the country's energy strategy and will make the infrastructure, which is vital for the development of oil and gas fields in Eastern Siberia and the Far East. This is the road towards development to us," said Mr Kasyanov.

He then added that the two projects may be combined into one by building a pipe from Angarsk to Nakhodka and a ramification to Daqing. "We will build one pipeline if we can. If not, there will be two pipes. The economy will tell us what to do," said the premier.

He added that the projects were designed for different resources.