Semyon Vainshtok, head of the state-run pipeline monopoly Transneft, said construction of the new pipeline could begin next month. The move is a direct result of a dispute earlier this year between Russia and Belarus. Russia says it needs to find other routes after a price feud temporarily threatened oil shipments to Europe.
The 367 million barrels per day pipeline will run from Unecha, Russia, near the border with Belarus, to the Baltic Pipeline System terminal in Primorsk, Russia, near Finland.
"We expect to reorient half of the 100 million metric tons (733 million bbl), exported through Belarus, to Primorsk," Vainshtok said.
The oil will then flow to Germany, and then to Europe and the United States, RIA Novosti reports.