As long as the proposed 2,400 km pipeline carries Siberian oil from the Angarsk oil fields to Daqing city, everything is all right in the world.

Yukos and China's PetroChina had signed a deal that would see Siberian oil being pumped through the pipeline for at least 25 years. This deal was signed in Moscow in May during the state visit of Chinese President Hu Jintao.

China needs the oil to help fuel its booming economy and will not brook any disruptions whatsoever - be it the arrest of the Yukos head or a rival Japanese bid.

In fact, the Beijing Business Today was quoted to have said that the pipeline project was still on track, despite the ructions. A Yukos spokesman has also confirmed, "since Yukos has signed the construction contract with China, it will certainly fulfil its obligations."

However, despite the Chinese confidence, the pipeline project is still very much in the air. The Russian government has stopped all construction as it is "conducting technical and environmental studies" that could see the abandonment of the project for environmental reasons.

Then there is the problem of the rival bid from Japan that calls for a pipeline terminating at a port close to Japan, which is a more attractive option as it opens Siberian oil to a wider market.

Japan has gone so far as to promise much-needed funding for development projects in Russia's Far East region.