Later, in 1996, on the initiative of the Russian president, Boris Yeltsin, Russia and China signed an energy agreement including plans for the ESPO pipeline.
The project involved the building of a pipeline from Angarsk, where Yukos operated a refinery, to Daqing in northern China.
[3] At the same time, Transneft proposed an alternative project to pipe oil from Taishet in Irkutsk Oblast to the Far East port Kozmino near Nakhodka.
[4] In May 2003, the Russian Government decided to combine these projects and that Transneft would be in charge of the pipeline, while Yukos would supply the oil.
[4] On 31 December 2004, the Russian government approved the construction of the pipeline from Taishet in East Siberia to Perevoznaya, Primorsky Krai, in the Pacific region.
[7] On 4 October 2008, the section between Taishet and Talakan was launched in a reverse to pump oil from Surgutneftegas-owned Alinsky deposit.
[10][13] The 64 kilometres (40 mi) long section from Skovorodino to the Amur River on Russia-China border was built by Transneft and the 992 kilometres (616 mi) long section from Russia-China border to Daqing was built by the China National Petroleum Corporation (CNPC).
[16] Because of protests of environmental organizations, the initial pipeline route was moved 40 kilometres (25 mi) north of Lake Baikal.
[20] The pipeline consist of 32 pumping stations, including 13 with tank farms with a total capacity of 2.67 million cubic metres (94×10^6 cu ft).
In November 2010, one of the minor shareholders of Transneft, Alexey Navalny, accused the company management of engaging in a US$4 billion embezzlement during the construction of the pipeline.