Russian railways to undergo US$1.4bn upgrade

Russian railways will undergo a US$1.4 billion transportation capacity upgrade to accommodate increasing oil exports to China, according to Chinese media reports. Russia-based OAO Yukos Oil signed an agreement with Russian Railways to deliver more than 6 million tons of oil to China in 2004. That amount is scheduled to increase to 15 million tons by 2006. The railroad expansion plans come after delays in talks on a US$2.5 billion Russian oil pipeline and lack of a decision on the pipeline's terminus.