After a cabinet meeting that talked about the contract, which was signed in February 2009, Regional Development Minister Viktor Basargin told reporters: The decision has been made.
Russian Prime Minister, Vladimir Putin said the creation of the branch will create a stable and reliable sales market for oil in the eastern direction from East Siberian fields.
Putin said the initial stage of the ESPO pipeline, from Taishet in the Irkutsk region to Skovorodino in the Amur region, will be placed into operation shortly.
Meanwhile, OAO AK Transneft (Transneft) issued a statement saying it has entered into an agreement with OJSC Rosneft Oil Company (Rosneft) regarding oil shipments to China.
As per the agreement, Rosneft will deliver through the ESPO branch nine million tons of oil to China every year beginning in 2011, while Transneft supplies six million tons.
