Sino-Japan War Over Siberia Pipeline

China and Japan are reportedly waging a fierce diplomatic war to get Russia to choose a pipeline route beneficial to their country. The war has arisen in the wake of Russia`s launching in earnest a project under which an oil pipeline carrying oil from East Siberia is to be constructed. Russia is the second largest producer of oil in the world.

On Monday, major Russian newspapers reported, "The world is paying attention to Russia`s construction project for developing an oil field and pipeline in Siberia." Two situations are fueling the interest of the international community. First, with the Middle East Asia is getting unstable day after day from the threat of war, many countries are rushing to secure other sources of oil. Secondly, Russia itself is investing huge amount of money to increase export of its oil.

Especially, the interest has spilled into a "war" between China and Japan over selection of the route along which an oil pipeline is to be built up to carry oil from the eastern part of Siberia to Northeast Asia. Caught between the crossfire, Russia could not make any decision for now. Originally, China had secured a vantage ground. From the beginning, the Chinese state-run oil company, CNPC, teamed up with Russia`s biggest oil company and jointly decided to construct a pipeline ending in Heilongjiang of China.

Belatedly, however, Japan has come up with a suggestion that the pipeline should be constructed to end in a region in the Far East Asia. Last month, Japanese Prime Minister Junichiro Koizumi visited Moscow and had a summit with Russian President Putin. During the summit, the two leaders discussed the Japanese proposal in depth. Japan promised, in return for Russia`s adoption of the Japanese proposal, to invest in the Siberia development project and import 1 million barrels of oil a day.

On the other hand, Russia begins to show interest in the proposal. Russia thinks the proposal could check China and help it develop the Far East region, which has been neglected so far, although adoption of the Japanese proposal costs more and poses more difficulties in construction.

In the meanwhile, China is trying to shoot down the Japanese interception through Russian oil companies with which it has maintained good relationship.

Recently, however, Russia has entered into a contract with the United States, under which it is to supply oil produced in the western part of Siberia to America. Thus, rivalry between China and Japan is getting more and more heated.

To determine the route for the East Siberian pipeline, Russia had a cabinet meeting last week, which was presided by its Prime Minister. The meeting, however, ended up without any conclusion. Some even argued for construction of two pipelines to satisfy both of China and Japan. But the mainstream opinion is against the two-line proposal. Russian daily Izvestiya predicts that the government will make a final decision at least by next month.

Young-Mook Choi lightee@donga.com