Russian President Vladimir Putin said at a press conference on July 8 in Scotland at the G8 Summit that Russia would offer China, instead of Japan the prior oil supply once the oil pipeline between Siberia and the port in the Far East is operational.

President Putin told reporters his promise to China at the summit that Russia would not begin to build the pipeline conveying oil to Japan until the pipe to China is built. He said the planned pipeline would stretch 4,118 kilometers from the east of Siberia, across the China-Russia borderline and to the Pacific port of Nakhodka.

The first phase of the 7-year project is scheduled to be completed in 2008. According to the scheme, Russia will supply some 20 million tons of oil to China annually and some 10 million tons, via railway, to Japan a year.

The pipeline will give Japan the nearest overseas access to oil. Japan has tried by all means in the competition for the prior oil supply privilege that the pipeline can provide. Right prior to the summit, Japan offered to increase its investment in the project to 9 billion USD from 7 billion USD in the case of Russia's commitment to offering the privilege to Japan.

By People's Daily Online