"According to the agreement, Yukos will transport 6.4 million tons via Russian railways in 2004, 8.5 million in 2005 and 15 million in 2006," Mr. Fadeyev noted.
In his words, the volumes will be enlarged from 2007.
"The company assigns priority to this agreement. This is a real contribution into the development of East Siberia," Yukos head Semen Kukes said.
Certainly, oil transportation via railways is more expensive than via pipelines. "However, the oil produced in East Siberia is clearer and China pays well for it. Railway transportation of oil has many prospects and will yield good profits," Mr. Kukes noted.
"The agreement with the Russian Railways will help develop new oil fields in East Siberia. We expect other companies, such as Rosneft, Surgutneftegaz, and Gazprom, to join us," Semen Kukes stressed.
The Russian Railways and Yukos will annually coordinate the volumes of railway oil supplies to China in 2007-2011.
According to Gennady Fadeyev, not only the two big companies but also the country as a whole will benefit from the implementation of this project. It will boost the development of East Siberia and the Far East.
"The agreement with Yukos is the first step on the way of the Russian Railways cooperation with major Russian companies," Mr. Fadeyev noted.
In the near future the Russian Railways will conduct negotiations with Rosneft on railway transportation of oil and oil products.
