The announcement on the eve of Monday's Brussels summit on Russia's occupation of Georgia put European states on notice that Moscow is developing an alternative client base in the Far East.

To stave off tough measures, including possible sanctions, Moscow has sent a variety of signals that it will use its energy clout to retaliate against any European reprimand for its refusal to implement a ceasefire with Georgia.

Russia's Asian pipeline is a technically challenging effort to link the oilfields of Eastern Siberia to Russia's Pacific coast thousands of miles to the east. Mr Putin visited Kozmino, a giant oil terminal, where the resources will be loaded for transportation to China and Japan.

The two-stage pipeline has been delayed by a year and building costs have soared as constructors grapple with the harsh conditions of the Siberian tundra, where temperatures regularly fall to -50 C and infrastructure is nonexistent.

When it is inaugurated the Kremlin will have succeeded in diversifying its financial dependence on energy sales to the European Union.