Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 22 -- Japan's Minister for Economy, Trade and Industry Shoichi Nakagawa has threatened to withdraw his country's financial backing for a proposed 4,180-km Russian pipeline after learning a spur to China might be completed first.
Nakagawa said at a press conference that he told Russian Industry and Energy Minister Viktor Khristenko during talks Apr. 21 that Japan will not offer financial aid if the likelihood of Russian oil reaching the Sea of Japan coast diminishes.
"Our (financial) cooperation is linked with the prospect of oil coming to our side. When we find out that oil will likely go to the other site midway, we cannot offer assistance," Nakagawa said.
Before departing for Japan on Apr. 20, Khristenko had indicated in a meeting with Japanese reporters in Moscow that Russia would give priority to the China-bound pipeline.
Khristenko said Russia initially would build the line from Tayshet to Skovorodino, the midpoint of the proposed pipeline, where the China-bound branch would start.
Russia's apparent decision to build the China-bound spur first could be viewed as a reversal for Japan, which has been lobbying to have the route built directly from Tayshet in eastern Siberia to Perevoznaya near Nakhodka in the Russian Far East.
Russia last December announced it would construct the oil pipeline along lines proposed by Japan, which has offered financial assistance for the project (OGJ Online, Feb. 24, 2005). Russia is expected to decide on details of the construction project after May.
