Russia’s Energy Minister Sergei Shmatko stated that Russia may enter into a crude oil supply agreement with China by the end of the year, in return for a multi-billion dollar loan for Russian oil companies. The Beijing-based magazine Caijing noted that the two countries may sign final agreements on loans and oil supplies soon. The report noted that while China would agree to provide $25 billion to Russian oil companies, it would receive 300 million metric tons of crude oil. A memoranda of understanding was signed to this effect on October 28.

In 2005, Moscow-based Rosneft committed to ship 48.4 million metric tons of crude to China National Petroleum Corp through 2010 to help repay $6 billion in loans that part-financed the purchase of the now bankrupt OAO Yukos Oil Company’s largest production unit.

Russia’s Deputy Prime Minister Igor Sechin also noted that China may provide Russian oil companies with “considerable” loans as the countries continued to expand their energy cooperation1.

• 1. “Russia and China close to crude oil agreement,” Asia Energy, November 26, 2008, at http://asianenergy.blogspot.com/2008/11/russia-and-china-close-to-crude-...