Putin says can't give Japan guarantees on planned oil pipeline

Russian President Vladimir Putin said on Saturday he could not give Japan guarantees that a planned eastern pipeline would eventually reach the Pacific coast, citing uncertainty about oil supplies.

Putin, speaking after the first day meeting of the Group of Eight summit, said both Russia and Japan wanted to see the second stage of the pipeline built but he could give no guarantees.

"Right now, Japan would like us to conclude an intergovernmental agreement on this problem," he told a news conference.

"Our position is that it's a purely commercial project and the state shouldn't take on any obligations in connection with completing the project."

Japan has been urging Russia for years to promise that the pipeline, which will run to the Chinese border in a first stage, will extended to the Pacific Ocean.

Putin explained that to put the plan into action was not a problem but to fill the network of pipelines required development of more productive fields in East Siberia.

Although Russia has used tax levers to lure companies to develop oil fields in the area, there has been so far too little oil available to make the pipeline viable.

Source: Xinhua