Russia and China intend to sign an agreement stipulating that the Chinese party will open a credit line to Russia's Transneft and Rosneft, Russian Energy Minister Sergei Shmatko told RBC today. He noted that talks on the matter were currently underway, and "everything is going fine." According to the memorandum of understanding on oil cooperation inked by Russia and China on October 28, 2008, the parties are to sign the agreement until March 1, 2009, the minister explained.
When the deal is struck, Transneft and Rosneft are expected to obtain up to $20bn-$25bn in loans secured by oil exports to China.