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.
