Russia's biggest oil producer Rosneft finally struck a deal on oil export-backed loans with Beijing in February, following "difficult talks" that have lasted a year. Under the agreement, signed by Rosneft, Russia's oil pipeline operator Transneft, the China National Petroleum Corporation and the China Development Bank (all state-owned entities), Rosneft will supply 300,000 b/d of crude to China over 20 years, starting from January 2011, and will in return receive a $15 billion loan for the same period.rnTransneft will get $10 billion for 20 years, which the company plans to invest in the construction of an offshoot from the East Siberia-Pacific Ocean pipeline that will take crude into China. Rosneft is to use the bulk of the funds to refinance its outstanding net debt of $19 billion.rnAlthough details were not disclosed, Russia's Deputy Prime Minister Igor Sechin said the deal had been sealed under terms "acceptable for both sides." Rosneft later revealed that the price of the crude would be based on market prices "at the time of deliveries," while local media cited unnamed sources as saying the price will be revised monthly and based on prices at the port of Kozmino in Russia's far east.
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