China begins work to connect oil line to Russia: report

China's Vice Premier Wang Qishan launched the project, which will link the Siberian border town of Mohe with refineries in China's Daqing city over 900 kilometers (558 miles) away, Xinhua news agency said.

The construction is part of a 20-year deal signed in April between the two nations that will pump 15 million tonnes of Russian crude annually into China when the pipeline is completed in 2010.

As part of the agreement, China will help finance Russian oil firms Rosneft and Transneft with a total of US$25 billion in loans.

The pipeline is a spur of the East Siberian-Pacific Ocean pipeline that is currently under construction and will transport Russian crude from Siberia to a terminal on its eastern coast.

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