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Transneft head Semen Vainshtok and Russian President Vladimir Putin (left) discussed the new Eastern Siberian-Pacific Ocean pipline route at the presidential residence in Sochi
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May 29, 2006
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Transneft Won't Move Lake Baikal
// Agenda
Last Friday, Russian President Vladimir Putin met with Semen Vainshtok, president of the state pipeline operator Transneft to discuss progress in the Eastern Siberia-Pacific Ocean oil pipeline project. Kommersant special correspondent Andrey Kolesnikov has the details.
At a meeting in Tomsk last month, it was decided, unexpectedly for Vainshtok, to move the pipeline no less than 40 km. away from Lake Baikal. Vainshtok again brought a map with him, on which the new route of the pipeline was marked out in red.

“We began construction from Taishet on April 28,” Vainshtok announced, “and we will begin construction from Skovorodina in two weeks.”

Vainshtok looked uncomfortable.

“We have had little time, so it is not possible yet to say what the final route of the pipeline will be,” he explained. He knew from bitter experience not to consider any route final. “On the 28th, the full contingent of surveyors, 900 people in 92 teams, will set out on the path. We have settled the financial questions. About 160 km. of pipe is already located along the path. We have specially organized two enterprises, one to manage the Eastern Siberia-Pacific Ocean project and another one similar to the Baltic Sea project. I do not see any reason to doubt that the Baikal will be serious relocated.”

Putin tried to contain his laughter and failed.

Vainshtok was no doubt happy at that moment for the meeting with the president. It would have been a lot of trouble putting the Baikal back again…

“Yes,” he said weakly, “you can't move the Baikal.” Suddenly, he mentioned the opposite extreme, equally unexpectedly. “We suggest that the closest point to Baikal will be at a distance of 400 km. Unfortunately, the solution that was suggested in Tomsk, to move the pipeline 40 km. was impossible. We have to go 400 km. farther, circumvent the mountains, because construction is impossible there.”

“The ecology of the Baikal,” the president began, but Vainshtok cut him short.

“Yes, of course! We are leaving the watershed completely… We can't do anything bad. And I think that, in spite of the fact that the increase in the pipeline route is 400 km. and we have no build an extra 300 km. of roads and install electrical facilities and supply power, I think that we will meet the tight deadline that we have set.”

“So I understand you properly that, first of all, you are working out a bypass option?” the president asked.

“Exactly!” Vainshtok confirmed.

“And in addition to that,” Putin said, “as far as I understand… I already spoke with several oilmen about the problem, you will lay the pipeline closer to the field? Talakan…”

“That's right,” Vainshtok interrupted again, “about 40 km. closer to Talakan.”

“So it turns out,” Putin continued, “that the route will be more expensive for you, but it will be cheaper taking into consideration that they will not have to extent their pipeline so far, and that means that they can make way a little bit on the tariffs. In short, the solution that you and I have found helps solve an ecological problem without economic losses and even gives some preference to our oil companies!”

“Absolutely so!” Vainshtok agreed.

So why was such a wonderful solution found only last Friday? A high-placed source on the presidential staff said that a solution where part of the work would be paid for by the oil companies (Surgutneftegaz is paying for Transneft's geologists, for example) would not have been possible without the direct intervention of the president. That is to say that, besides his frantic pushing for the North European Natural Gas Pipeline, he has taken on the management of the Easter Siberian-Pacific Ocean pipeline.



Andrey Kolesnikov

All the Article in Russian as of May 29, 2006

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