Pipeline to drive Russian economy
The Power of Siberia pipeline is the world's largest proposed fuel network linking gas fields in eastern Siberia to China.
Pipeline manufacturing in Russia has increased by eight percent in yearly comparison, details the report published by the group on Friday.
If Russia continues to increase its state defense order and the Power of Siberia is able to attract considerable investments, the GDP dynamics in 2014 will be different from that of a zero, explained VTB Capital Chief Economist for Russia Vladimir Kolychev.
On Monday, Russia's Gazprom began construction of the first part of the pipeline which will traverse five Russian constituent entities spanning nearly 4,000 km ts and have an annual capacity of 38 billion cubic meters of gas.
The gas pipeline is set to become a common transit center for gas production centers in the Sakha (Yakutia) and Irkutsk regions, transporting gas from the regions to Vladivostok via Khabarovsk.
The cost of construction is estimated at more than $20 billion (770 billion rubles), which includes other investment in the Sakha Republic (Yakutia) region of $7.5 billion (283 billion rubles).
The pipeline will run along the already operational Eastern Siberia-Pacific Ocean oil pipeline, which should help streamline infrastructure and power supply costs. The first section of the Power of Siberia GTS is expected to go into operation in late 2017. ■