The Russian government on April 13 approved an agreement signed in February with China to build a branch of the Eastern Siberia-Pacific Ocean (ESPO) oil pipeline and to provide assurances on long-term oil supplies. With an expected annual throughput of 15 million tons of crude oil, the branch pipeline will connect Skovorodino in Russia and China's Mohe station. PM Vladimir Putin stated that the construction of the pipeline will “create a stable and reliable sales market for oil in the eastern direction from East Siberian fields." Putin added that the first stage of the ESPO pipeline, from Taishet in the Irkutsk region to Skovorodino in the Amur region, will begin operations soon.

In another agreement, Russian state oil pipeline company Transneft announced that it had signed an agreement with state oil company Rosneft concerning oil shipments to China. Under the terms of the agreement, Rosneft will supply through the ESPO branch 9 million tons of oil to China every year starting 2011, while Transneft will supply 6 million tons1.

• 1. “Russian government approves the pact with China on pipeline, supplies,” Xinhua, April 13, 2009, at http://asianenergy.blogspot.com/2009/04/russian-government-approves-pact...