Russia Monday launched its Eastern Siberia-Pacific Ocean (ESPO) oil pipeline network that will ultimately carry crude to China.
During a ceremony held at an oil terminal in the port of Kozmino near the Pacific city of Vladivostok, Russian Prime Minister Vladimir Putin activated the first section of the oil pipeline transportation system, allowing oil pumping to the first tanker.
Terming it as an "excellent New Year gift to Russia," Putin said the "strategic project enables the country to enter new markets in the Asia-Pacific region."
The first phase of the ESPO project costing 360 billion rubles ($12.1 billion) was completed in less than five years. The 4,000 kilometer pipeline that runs from Taishet in eastern Siberia to Nakhodka will enable Moscow to reduce dependency on European customers.
Under a deal to ensure long-term Russian oil supplies to China, a branch of the pipeline from Skovorodino to China's northeastern city of Daqing will become functional in October 2010.
The project is designed to pump up to 1.6 million barrels (220,000 tons) of crude per day from Siberia to Russia's far east and then on to China and the Asia-Pacific region.
According to news agency RIA Novosti, the project's first leg envisages construction of a 2,757-kilometer section with annual capacity of 220.5 million barrels of crude.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.