Due to the problems Yukos has encountered with paying for railway shipments, China is ready to make upfront payments for October supplies, Fadeyev said. The issue will be settled before the beginning of October, he added.
This year oil supplies to China are made in compliance with the schedule, he emphasized. Out of 6.5 million tons, 2.8 million has already been sent, he said.
On September 20, Yukos officially announced suspension of part of its direct exports to China from September 28, 2004 due to its failure to carry out pre-export financing.
The day before the oil major's representative confirmed to RIA Novosti that Yukos intended to resume supplies to China as soon as "it has money to finance exports".
According to China's chief customs department, in January-August 2004 the country imported 79.96 million tons of crude, out of which Russia's share was 6.84 million tons or 8.5 percent.
By 2010 railway shipments of goods to China will double, Fadeyev said. This year the figure is expected to reach 30 million tons.
"Specific agreements on cargo shipments between Russia and China will be signed in October," he added.
According to him, the Chinese Railway Minister had said at the talks that China's demand for railway shipments was not met. In order to prevent the same from happening in Russia, the Russian Railways will invest 14 billion roubles [29 roubles equal approximately $1) in construction and reconstruction of railways in the direction of the Chinese border by 2008, Fadeyev said.
