June 11, 2009
Advanced Search

Login:

Password:

Forgot your password?
Register now

Home / Issue Archive / 2009 / March #3 / Trasneft Pipeline to Reach Chinese Border Within Weeks

№ 3 (March 2009)

Trasneft Pipeline to Reach Chinese Border Within Weeks

The Russian state oil pipeline Transneft will finish the laying of the East Siberia-Pacific Ocean (ESPO) oil pipeline to the Chinese border within weeks, said Russian Prime Minister Vladimir Putin Monday when presenting to the State Duma, lower house of parliament, a government report.

Share it!
(Xinhua News Agency) - The Russian state oil pipeline Transneft will finish the laying of the East Siberia-Pacific Ocean (ESPO) oil pipeline to the Chinese border within weeks, said Russian Prime Minister Vladimir Putin Monday when presenting to the State Duma, lower house of parliament, a government report.

"In just a few weeks, the phase during which the pipeline will reach the Chinese border will be over and we will go further to the Pacific Ocean," the Interfax news agency quoted Putin as saying.

Russia and China signed an intergovernmental agreement on the construction of an ESPO branch toward China and long-term Russian oil supplies in February.

Transneft's shares surged more than 12 percent immediately following Putin's statement, according to Interfax.

Putin also said that excluding Russia from world's energy decision making is "counterproductive," apparently referring to the Ukraine-EU declaration on pipeline modernization.

"Attempts to exclude Russia from the global decision making process, moreover in the energy sphere, and disregard to its lawful interests are counterproductive," the Interfax quoted him as saying.

"We are certain that new energy transportation routes developed by Russia, such as Nord Stream, South Stream, the Caspian Gas Pipeline and the Burgas-Alexandroupolis oil pipeline are economically feasible," he said, adding that Russia "will continue to implement them."

When evaluating the ongoing global financial turmoil and economic downturn, Putin said that Russian economy does not differ in principle from world tendencies, and the economy is in rather "good shape" facing the crisis.

The deflation of ruble's exchange rate has been "smooth," and the threat of the banking system's collapse has "receded" due to the measures taken by the Russian authorities, he said.

Speaking of Russia's gross domestic product (GDP) in 2008, Putin said that it grew by 5.6 percent.

"The growth of industrial output was 2.1 percent. Agriculture showed a growth exceeding 10 percent. Investments grew by 9.8 percent, and labor productivity by about 5 percent. Real wages grew by 10.3 percent in 2008, and minimal wages were increased by about two-fold," the Itar-Tass cited the prime minister.

Putin also promised that the government would exert to ensure the budget deficit down to 3 percent of the GDP by 2011.

Admitting that 2009 will be a "very difficult" year, Putin believed that the government's anti-crisis program and the amended 2009 budget reflected its "responsible and highly realistic socioeconomic policy."

Putin also said that Russia will spend 3 trillion rubles (90 billion U.S. dollars) on anti-crisis measures, including 1.4 trillion rubles (42 billion dollars) from the federal budget.

"Anti-crisis measures stipulate 1.4 trillion rubles in funds. On the whole, taking into account the effects of tax cuts, Central Bank funds, the National Welfare Fund and other sources to fight the consequences of the crisis and help the economy rebound, a total of 3 trillion rubles has been allocated," the RIA Novosti news agency quoted the prime minister as saying.

Meanwhile Putin said that Russia may possibly reduce the Central Bank's interest rate as a result of a lower inflation, which might be downed to 8 percent sooner than in three years.

The overall debt of Russian companies has reduced 174 billion dollars from 500 billions dollars in recent months, said Putin.

Putin also assured the lawmakers that Russia will overcome the crisis with tougher financial discipline and prevention of "groundlessly bloated" budget spending, according to Itar-Tass.

Putin delivered a government annual report for the first time as prime minister starting from Monday noon. The report includes anti-crisis measures drafted by the Cabinet and the main parameters of a new draft budget for 2009.

- Copyright 2009, Xinhua News Agency. All rights reserved.
Share it!
Copyright © 2008 Eurasia Press, Inc. (USA). All rights reserved.
Web programming by Iflexion
Copyright © 2008 Eurasia Press (www.eurasiapress.com)