17 December 2003 01:47
Russia fails to give Japan clear signal on choice of Siberian oil pipeline route
Russia and Japan agreed yesterday on the importance of a Japanese plan for an
oil pipeline from Siberia to the Pacific coast that is competing against a
Chinese proposal for Moscow's approval.
But Mikhail Kasyanov, the Russian prime minister, speaking during a visit to
Tokyo, did not give a clear indication which pipeline route Russia was likely
to approve.
Mr Kasyanov's met his Japanese counterpart, Junichiro Koizumi, for talks
on a wide range of issues, including a peace treaty between the two countries
and the Kyoto Protocol on climate change, but the pipeline and Japanese trade
and investment were key topics.
For Japan - which has few natural resources - the Siberian pipeline would
form part of its strategy to secure energy supplies, particularly as energy
demand from China is likely to increase.
Moscow was considering a pipeline proposed by Beijing about 10 years ago to
deliver 600,000 barrels of crude oil a day from Angarsk to Daqing in China,
until Japan made a rival proposal this year.
Japan argues its proposed pipeline, delivering 1m barrels a day to Nakhodka,
on Russia's Pacific coast, would give Russia access to east Asian and US
markets. Trans-neft, the Russian state-owned pipeline operator, and Rosneft,
the state-owned oil group, have favoured the Nakhodka route for that reason.
In their joint statement yesterday, Mr Kasyanov and Mr Koizumi said that a
Pacific pipeline was important for the development of eastern Siberia and
Russia's far east, for the effective use of the regions' energy
resources and the stable supply of energy to Asia Pacific. But a similar
statement calling for deeper co-operation in energy projects, including
pipelines, was issued after Mr Kasyanov's visit to Beijing in September.
Shoichi Nakagawa, Japan's trade minister, told Mr Kasyanov yesterday
that Japan was willing to provide financial assistance for the pipeline.
Japan has previously offered about Dollars 7bn (Euros 5.7bn, Pounds 4bn) to
pay for its construction and to help develop oil fields in eastern Siberia.
Mr Kasyanov also met Japanese business groups, including the influential
lobby Keidanren, energy executives and other business leaders.
Mr Kasyanov and Mr Koizumi agreed to establish an organisation to promote
trade and investment between the two countries, designed to encourage
medium-size Japanese companies to enter the Russian market.
The two leaders also agreed to accelerate discussions on a peace treaty,
which has yet to be signed after the second world war because of four
disputed islands. Yoriko Kawaguchi, the Japanese foreign minister, is to
visit Russia in the first half of next year to discuss the treaty.
[FTI [The Financial Times]] |
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