Tag: Transneft

Russia’s plan to reorient its energy trade towards the east has taken a leap forward with the start of oil exports through a new pipeline to China.

The pipeline, running from Skovorodino in east Siberia to Daqing in north China, is an offshoot of a new oil export route Russia is building to the Pacific Ocean, providing the world’s top oil producer with a strategic window on the energy-hungry markets of Asia. When it is completed in 2013, the 4,070km pipeline can carry up to 1.6m barrels a day of oil, about one third of Russia’s current exports.

Shares in Transneft, the Russian oil pipeline monopoly, were trading down over 2 per cent on Friday morning, having slipped close to 6 per cent on Thursday after the Kremlin confirmed it would not be included in its planned $60bn in asset sales. But investors hoping to buy some of the assets on sale shouldn’t be too disheartened.

While a Transneft share sale would have increased the liquidity of the company’s traded stock, and, in idealists’ minds, perhaps have improved the company’s transparency, its exclusion from the short list will lend more seriousness to the rest of the government’s asset sale plans.

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