Fedoun estimated that this results in a shortfall for government revenues of up to $4 billion annually. The oil company is therefore actively encouraging the government to take urgent decisions on pipeline construction projects. The government is supposed to decide this year on the route of a pipeline linking western Siberia to the Arctic to supply Europe and the US. Another pipeline project being studied will link oilfields in eastern Siberia with Asia, either towards Japan or China. LUKoil’s president, Vagit Alekperov, said the government should encourage investments in oil transport infrastructures, including private investments, and in oil exploration. “In the case of private investments, the government can protect itself using legislation and introducing regulations for the use of new pipelines”, he said. However, the government wants Transneft to keep its monopoly over Russian oil pipelines, and is believe currently to be unwilling to authorize the construction of private pipelines.