Russia and China signed a 25-billion-dollar energy deal in Beijing on Tuesday under which Russia will pump oil to its energy-hungry neighbour for the next 20 years in return for loans, Russian Deputy Prime Minister Igor Sechin said, dpa reported.
Sechin, who overseas energy, secured the deal in a meeting with Chinese Prime Minister Wen Jiabao in the Chinese capital.
The agreement provides for the completion of a pipeline linking Siberian oil fields to northern China, agreed to in talks between the two countries' premiers in October.
Sechin was quoted by news agency Ria-Novosti as saying Russia will supply 15 million tons (300,000 barrels per day) of crude annually for 20 years to China on credit. He did not specify the size of the Chinese loan.
Late last year, Moscow had sought 20 to 25 billion dollars in credit for energy major Rosneft and pipeline monopoly Transneft to build an extension of the East Siberia-Pacific Ocean (ESPO) pipeline to northern China. The connection is expected to operate by end of year.
The accord will allow Moscow to diversify its client base from its current dependence on Europe.
The loan also comes at a critical time for Russian oil firm Rosneft, which is deep in debt and hit by the double whammy of falling production and slipping global crude prices.
Russia, the world second-largest producer of crude oil, is only China's fifth largest supplier of oil.