By Eurasia Business News – February 4, 2022

View on business towers in Beijing, China.

The Russian oil producer Rosneft and the China National Petroleum Corporation (CNPC) signed today a $80 billion deal. The Russian company agreed  with CNPC on the supply of 100 million tons of oil through Kazakhstan over a period of ten years, reported a corporate press release.  

Against the backdrop of the agreement, Rosneft shares rose by 2.4% on the Moscow stock exchange.

The size of the transaction in monetary terms is not determined, as it depends on market prices for oil in the long term, the price of each delivery is determined by the formula based on the market quotations of crude oil and in current parameters is $80 billion.

The delivery period is ten years, ending December 31, 2033.

The Rosneft’s total supplies to China since 2005 amounted to 442 million tons of oil. Rosneft occupies a leading position among oil exporters to China, annually providing 7% of the country’s total demand for raw materials. The Russian oil producer is also one of the leaders in the supply of petroleum products to China. Since 2009, Rosneft has exported about 41 million tons of oil products.

Read also Gazprom and CNPC signed a new agreement on gas supplies

Today, February 4, the Russian President Vladimir Putin and Chinese President Xi Jinping held talks in Beijing for three hours. Mr. Putin said that Russia and China had agreed on new energy supplies. 

Immediately this meeting, Rosneft and Gazprom announced new contracts with the Chinese state-owned CNPC.

Read also : Ukraine’s gold and foreign reserves reached highest since 2012

Read also : Gold production in Russia decreased by 1.3% to 174 tons in January-July 2021

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