Russia, China in Talks on Loans for Oil, Gas Supplies - Russia Deputy PM

March 20, 2013

Dow Jones reports that Russia is in talks with China on receiving loans in return for oil and gas supplies, Russian Deputy Prime Minister Arkady Dvorkovich said Tuesday.

Russia, the world's largest energy producer, is looking to increase energy sales to the Asia-Pacific region. Talks to sell gas to China have stalled for years on price, but state-controlled OAO Gazprom (>> Gazprom OAO) says it wants to conclude a deal by the end of the year.

State-controlled OSO Rosneft (>> Rosneft' NK OAO) is also in talks on increasing oil supplies to China. Mr. Dvorkovich told reporters the oil could be sent via Kazakhstan or the ESPO pipeline.

OAO Gazprom said in late February it aims to sign a contract to export annually 68 billion cubic meters of gas to China by the end of 2013, while Russian news reports in January suggested Rosneft and China were in talks on nearly doubling supplies from the current 300,000 barrels of crude per day.

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