China to get first crack at Russian oil: Putin

[mom cat]

China to get first crack at Russian oil: Putin
By John Helmer

MOSCOW - In his most detailed statement to date, President Vladimir Putin has spelled out Russia's priorities for transporting crude oil to Asian markets in the next decade. In diplomatic but unambiguous language, Putin rejected Japanese proposals, in favor of China.

In a press conference at Gleneagles last week as the new chairman of the G8, Putin identified rail deliveries to China from the new border terminal at Skovorodino as his first priority, with 20 million tons (385,000 barrels per day) the target for delivery, once Transneft, the state pipeline agency, builds the planned new pipeline to Skovorodino.

This terminal is 600 kilometers east of the main border rail junction at Zabakailsk and Manzhouli, where current Russian oil deliveries by rail cross into China. It is still unclear what rail capacity China has, or will build, to carry the oil from Skorovodino. Current maps show Russian and Chinese rail lines moving east-west in parallel on either side of the border. They are not yet connected.

An additional 10 million tons (192,000 bpd), Putin said, will be sent on by rail to the new tanker terminal planned near Nakhodka. Construction will take "around three years", the president noted. The president's remarks rejected wishful thinking from Tokyo that a Japanese government offer to finance a pipeline all the way to Perevoznaya Bay, near Nakhodka port, would tempt the Kremlin over Chinese insistence that deliveries to Beijing take priority. "As the oil in this pipeline increases through the development of new sources and fields in eastern Siberia," Putin said, "we will build a second section of the pipeline that will run right to the Pacific coast. This system will then be pumping 50 million tons <972,000 bpd>..."

more:
http://atimes.com/atimes/China/GG16Ad01.html

[HysteryDiagnosis]

1. Now why oh why would Putin be taking this tack.... ideas??

[mom cat]

2. Russia sees the strengthening ties between the US and Japan as a threat.

Note the recent involvement by Japan and the whole area of missile defense:
http://atimes.com/atimes/Japan/GG09Dh04.html

Russia is making geopolitical choices that lean more toward China (who is also having increased difficulty with Japan).

Also, with the increased friction between South Korea and the United States, the US will be relying more on the Japanese. It is not in Russia's best interest to support the Japanese with more oil at this time.

[WhiteTara]

3. maybe he didn't like chimpy spitting gum

and then looking into his soul?
:sarcasm:

[Igel]

4. And don't forget Sakhalin and the other land claims.

Russia has a lot of baggage from WWII that they can't deal with.