MOSCOW, March 28 (RIA Novosti) - Shareholders of Russian oil company Transnefteproduct approved March 24 the receipt of a $753-million loan from foreign trade bank Vneshtorgbank (VTB), the oil company said in a news release Tuesday.
The seven-year loan with 10% annual interest will be used to finance projects, including the construction of a new export oil product pipeline called the North project linking Kstovo with Yaroslavl, Kirishi and Primorsk (the Leningrad Region) and a bulk oil terminal in Primorsk.
Transnefteproduct launched the project in October 2004. The route of the trunk oil product pipeline will cover seven Russian regions: Niznhy Novgorod, Vladimir, Ivanovo, Yaroslavl, Tver, Novgorod and Leningrad. The total capacity of the pipeline will be 24.6 million metric tons of diesel fuel annually.
Transnefteproduct will provide 30% of the funds for the North project and attract 70%. The first unit is expected to become operational in 2007.
