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Rosneft President and Chairman Igor Sechin (R) and Chairman of China National Petroleum Corporation (CNPC) Zhou Jiping at the 2013 Saint Petersburg International Economic Forum (courtesy of Rosneft)

Russia has started delivering crude oil to China this year after the two countries agreed to supply terms in June at the International Economic Forum in St. Petersburg.

State-owned Rosneft said it received an advanced payment from China for the oil deliveries.

Beijing has turned toward Russian supply to diversify away from Europe, a Voice of Russia report said.

Deliveries are being transported through Russia’s WSPO pipeline (West Siberia-Pacific Ocean pipeline) which goes through some of Russia’s richest oil reserves areas .

China’s estimated oil demand in 2014 will reach 518 million metric tons with an annual growth of 4 percent. The crude imports will reach 298 metric million tons, up 7.1 percent year-on-year, the report said.

Rosneft plans to supply 360 million metric tons of crude oil to China for a period of 25 years.

“Russia’s budget, in its turn, will be boosted by additional revenue of up to $2.5 billion annually in export duties paid by Rosneft,” Voice of Russia said.