Russian Oil Companies Borrow from China

Russia and China have signed an intergovernmental agreement under which Russian oil companies Rosneft and Transneft will start to access loans of 25 billion U.S. dollars (19.1 billion euro) granted by the government in Beijing, in exchange for a supply of oil for 20 years.

According to stipulated terms, Russia will begin construction of pipelines to China this month, the project will be completed next year, says Russian press agency Interfax.

Following a meeting held in Beijing, Russian Deputy Prime Minister Igor Sechin has signed intergovernmental agreement, together with the Chinese deputy Wang Qishan.