Financial Times FT.com

Tokyo in threat to withdraw from $11bn oil pipeline

By David Pilling in Tokyo and Isabel Gorst in Moscow

Published: April 30 2005 03:00 | Last updated: April 30 2005 03:00

Tokyo will withdraw its offer to help finance an $11.5bn oil pipeline from Siberia to Russia's Pacific coast if Moscow pursues a plan to build a spur to China first, Japan's trade minister said.

After years of wrangling with Japan and China, Russia announced last December that it would build a 4,100km pipeline to Perevoznaya on the Pacific coast, from where oil could be exported by ship to several countries, including Japan.

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