Japan and Russia in Oil Pipeline Deal

11/23/2005

Russia signs accord for Siberian oil pipeline

November 22, (AP)—Japan won a promise from Russian President Vladimir Putin to establish within a year a construction timetable for a pipeline that would carry Siberian oil to the Sea of Japan. Putin’s visit to Tokyo, his first to Japan in five years, is seen by many as an attempt by Russia to balance Asia’s power triangle. Putin and Japan’s Prime Minister Junichiro Koizumi signed accords on the pipeline, which could cost $11.5 billion, run 2,600 miles, and carry 1.6 million barrels of oil a day to Japan.

Currently the U.S. sells most of its Alaskan oil to Japan. Many nations in Europe are also signing up to buy Russian supplied oil.