Russia has vetoed proposals to build oil and gas pipelines from Siberia to China in favour of lines leading to its far eastern port of Vladivostok, a report said yesterday. The 2,260km oil pipeline was to have linked Angarsk in Siberia to Daqing in Heilongjiang province, in the northeast, and initially carry an annual 20 million tonnes, rising to 30 million when fully operational. An agreement on the pipeline was to have been signed during Russian President Vladimir Putin's visit to Beijing at the start of this month. But the Business Post newspaper yesterday reported that just four days before leaving for China, Mr Putin decided to veto this proposal and another to build a gas pipeline to China. He instead approved a plan to build oil and gas pipelines from Angarsk to Vladivostok, on the Pacific, where the resources could be sold to different countries, including China. The Daqing oil pipeline was to have been jointly built by Yukos, a Russian company, and the China National Petroleum Corp (CNPC), which declined to comment on the cancelled plans. Mr Putin decided that it was more commercially viable to build the pipeline to Vladivostok as the oil could be sold to several different countries. If a third country had wanted to buy oil from the Daqing pipeline, it would have to be piped to the port of Dalian, in Liaoning province, for export. Another factor was a memorandum of understanding signed last month by Yukos and other Russian oil companies to build a 3,000km pipeline to carry oil from Siberia to the port of Murmansk, on the Bering Sea, for shipment to the US and western Europe. The decision is bad news for China, which was looking to the Siberian pipeline to provide a cheap, long-term and stable supply of oil. Given that one-third of the pipeline to Daqing would have been in China, built by CNPC, it was expecting to pay below the market price for a 25-year contract.