Russian oil giant Rosneft said that China National Chemical, known as ChemChina, agreed to purchase 2.4 million tons a year of crude oil. That amount is equivalent to 6% of Rosneft's total exports to China in 2017.
Crude oil from Eastern Siberia will be transported to a Russian Far East port by pipeline and will reach China via Russia’s Pacific port of Kozmino.
The deal allows for increasing crude oil supplies to China’s market, which is a strategic one for Rosneft, the Russian company said in press release.
"Conclusion of the contract will lead to an increase in direct supplies of oil to the strategic Chinese market and ensure a guaranteed cost-effective export channel for the Company's crude sales," said the release.
ChemChina is one of the largest petrochemical companies in the world. The company's business is focused on oil refining, production of basic and special chemical materials, agricultural chemistry, rubber products, and chemical equipment.
According to media reports, Rosneft will also form a joint venture with Beijing Gas Group to operate filling stations in Russia for natural gas-fueled vehicles.
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