Rosneft Receives Advanced Payment from China for Oil

MOSCOW, January 15 (RIA Novosti) – Russian state oil company Rosneft said Wednesday it has received an advanced payment from China for oil deliveries that began this month.

“The payment was received in two parts, in line with the schedule agreed by the parties,” the company said in a statement.

Advanced payments will total $70 billion, with the first tranche standing at $20 billion, Bloomberg news agency reported.

Rosneft and China’s national oil giant CNPC signed long-term crude oil supply contracts during the St. Petersburg International Economic Forum in June 2013. The deal came as part of an intergovernmental agreement to boost crude oil sales signed in March 2013 and ratified in December 2013.

In line with the deal, Rosneft plans to supply 360 million metric tons of crude oil to China for a period of 25 years.

Russia’s budget will be boosted by additional revenue of up to $2.5 billion annually in export duties paid by Rosneft, Energy Minister Alexander Novak said late last year.

“In 2014, the supplies will be performed according to the schedule agreed between the parties via [the Eastern Siberia–Pacific Ocean] pipeline system and by transit via Kazakhstan. The supplies via Kazakhstan started on January 1,” Rosneft President Igor Sechin said in the company's statement.