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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (4831)	5/20/2005 1:57:24 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China to get oil before Japan: Russian envoy BEIJING (Kyodo) Russia will prioritize China over Japan as the recipient of oil supplies from an oil pipeline project linking eastern Siberia with the Russian Far East, departing Russian Ambassador to China Igor Rogachev said Thursday. "I think that . . . first of all, oil will go to China," Rogachev told reporters. "And then, maybe (on the) second round, it will go east" to other countries, including Japan, he said. Both Japan and China have tried to persuade Russia to favor it in the planning of the pipeline's route. In what appeared to be a victory for Japan, Russia agreed last year to build a 4,180-km pipeline from Taishet near Lake Baikal to Nakhodka on Russia's Sea of Japan coast, Japan's preferred route. But last month, Moscow issued an order for the pipeline to be built from Taishet to the halfway point at Skovorodino near the Russian-China border, triggering worries in Tokyo that oil supplies will go to China first. Japan's fear was compounded by comments by a Russian energy official, carried by the Interfax news agency, later that Russia may stop building the pipeline to the Pacific side if a three-year geological survey finds crude reserves to be insufficient. "China is our next-door neighbor, so the distance is very short," Rogachev said. "From an economic point of view, (supplying oil to China) is very effective." "I think we do have much more (reserves), so in passing time, of course we can supply other countries," including Japan and South Korea, he said. Japan has told Russia it may not offer financing for the pipeline project, expected to cost $12 billion, if the prospect of Russian oil reaching the Sea of Japan coast diminishes. When complete, the pipeline is expected to funnel 80 million tons of Russian oil annually. Rogachev also called Prime Minister Junichiro Koizumi's repeated visits to Yasukuni Shrine a diplomatic mistake. Asked about wrong moves other countries have made in their interactions with China, the ambassador said, "The latest mistake is from the prime minister of Japan." The visits to the shrine, which honors Class-A war criminals along with the country's war dead, have upset not only the Chinese leadership, but also the ordinary Chinese public, Rogachev said. "For what purpose (Koizumi visits the shrine), I can't understand." The Japan Times: May 20, 2005 japantimes.co.jp