"The construction will begin as soon as China starts transferring [its $25 billion loan to Russian state-controlled crude producer Rosneft and pipeline operator Transneft]" Sechin, who is responsible for the fuel and energy sector in the Russian government, said. "Probably, in April if everything goes as scheduled."
Transneft head Nikolai Tokarev confirmed that the construction would begin in April saying that "the funds are available."
On Tuesday Russia and China signed an intergovernmental agreement on the construction of a branch of the East Siberia-Pacific Ocean (ESPO) oil pipeline toward China and long-term Russian oil supplies.
Under the agreement, Russia will supply 15 million metric tons (110 million barrels) of crude annually for 20 years to China. China, in turn, will provide $25 billion in loans to Rosneft and Transneft.
Sechin praised the deals as a "breakthrough," saying that "$25 billion is a unique deal in the history of the global economy."
The ESPO pipeline is currently under construction and expected to start pumping its first oil in late 2009.
Add to blog
You may place this material on your blog by copying the link.
Image Galleries: Track-and -Field Athlete of the Year Yelena Isinbaeva
Infographics: Russia – Ukraine Gas Dispute
New ties between Russia and Japan would mark not only a breakthrough in their relations but also a significant shift in Northeast Asia’s political dynamic. Both are secondary players in a region overshadowed by an increasingly assertive China, which has not hesitated to push against the boundaries of its neighbors.