icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Rising materials costs push ESPO price tag up

Construction costs for the multi-billion dollar East Siberia – Pacific Ocean pipeline are to rise again.

Speaking to RT, Transneft President Nikolay Tokarev, cited rising materials costs and the significant rise in metals prices as being key factors.

Primarily it's due to metal prices. We managed to buy all the supply we needed for the first stage of construction before the wild jump in prices. Metal prices will influence the second stage – pipe prices will increase by 100% by the end of the year and we'll have to alter our budget for the second stage of construction. In the first stage we expect financial factors to influence costs. Our credit contract with Sberbank means our credit costs can rise. We expect this. The growth will not be linear. It will be 1.5 to 2% on some of the money we have borrowed.

Podcasts