Oil-hungry China continues to search for energy...
Yukos may finally realiize its plan for a massive increase in exports to China thanks to the help of Russian Railways Co., or RZD. The Russian rail firm plans to open a new route to its oil hungry neighbor.
"We have worked well with Yukos on China. By 2006 we can increase exports by rail up to 12 million tons, from 3 million in 2003," RZD vice president, Salman Babayev, told reporters Wednesday.
In May the Chinese government signed a contract with Yukos for the gradual expansion of oil exports to 30 million tons per year. Unfortunately, these volumes cannot be reached without a pipeline, but rail is currently the main way to export oil to China. Therefore, the RZD announcement is welcomed by all.