Energy Ministry Favors State Financial Support to Espo Project

MOSCOW. Oct 7 (Interfax) – The Russian Energy Ministry thinks that the East Siberia – Pacific Ocean (ESPO) pipeline project should receive state financial support.

“The ESPO project should receive some kind of state support,” Energy Minister Sergei Shmatko told journalists on Tuesday.

The minister noted that it is “rather dangerous” to resolve problems with the infrastructure building by means of a tariff.

Currently, the possibility of joint funding of the project is being studied, he said, adding that some funds will be raised through banks, including state-owned ones.

The ESPO pipeline is intended to transport oil to the promising Asian-Pacific market. Earlier, it was envisioned that the first portion of the pipeline would be launched in October – December 2008. The launch, however, was delayed until the fourth quarter of 2009.

October 4 saw the launch of the first portion of the pipeline in the reverse direction.

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