China Trade Information

A delegation chaired by vice presidents of Russia’s largest oil manufacturer Rosneft and oil pipeline operator Transneft has arrived in Beijing earlier this week and will enter the final round of talks with China on the US$25 billion worth of oil loan scheme, the Xinhua News Agency reported on Tuesday.

Meanwhile, Russian Vice Premier Igor Sechin is also scheduled to visit China this week, which is, to some extent, expected to expedite the progress of negotiations between two sides.

Pursuant to the primary agreement reached last month, China would provide US$15 billion and US$10 billion worth of loans to Rosneft and Transneft respectively.

In return, Rosneft promised to provide 20-year oil supply to China National Petroleum Corporation (CNPC), parent of the country’s largest oil and gas producer PetroChina<601857><857>
, while Transneft takes pipeline infrastructure construction mortgage as guaranty for the US$10 billion worth of loan.

It was reported that the two sides had suspended the negotiation last month on disagreements on interest rates and state guarantees.

Tags: CNPC, PetroChina, Petroleum

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