Russia capable of building eastern pipeline by itself: FM

Russia is entirely capable of building Eastern pipeline by its own capital, and there is no need to take a loan from Japan, Russian Foreign Minister Sergei Lavrov stated at the St. Petersburg international economic forum on Tuesday.

"We have the money. We have an enormous budget surplus" to build an oil pipeline network from Eastern Siberia to the Pacific, Lavrov was quoted by the Interfax news agency as saying.

But "if loans are given on terms that we find acceptable, we will see," the minister added.

Referring to Japan's concern of that after the construction of the first stage of the pipeline oil will be pumped to China, Lavrov said that simultaneously with building of the first stage of the pipeline to Skovorodino, an oil terminal will be built in Perevoznaya Bay for oil deliveries to Asian and Pacific Rim countries.

"We have explained to Japan that in any case after the first stage is completed oil will be delivered through the terminal and they know it. I don't understand their anxiety," Lavrov said.

At the same time, the foreign minister also touched on the planned transfer of some Russian armaments currently stationed in Georgia to Armenia, saying it will not alter the balance of forces in the Transcaucasia.

According to him, Russia had notified Azerbaijan that the planned transfer of Russian weapons to Armenia would not alter the balance of forces in the region.

Russian Defense Minister Sergei Ivanov said here earlier on Tuesday that some of the armaments currently deployed at Russia's bases in Georgia would be transferred to a Russian base in Armenia.

Ivanov said the case of transferring these weapons is not being discussed.

The withdrawal of Russia's military bases from Georgia is due to begin in 2005 and finish in 2008, the report said.

Source: Xinhua