1 Dec 2014 12:50

Transneft begins repayment on loan from China Development Bank

MOSCOW. Dec 1 (Interfax) - Transneft has been paying $55.6 million a month since June 2014 under the schedule for repaying the multi-billion dollar loan from China Development Bank secured with long-term deliveries of crude oil, Transneft said in its IFRS earnings report.

Transneft together with Rosneft began delivering oil to China on the Eastern Siberia-Pacific Ocean (ESPO) pipeline on January 1, 2011. Under the 20-year contract, Rosneft is to annually deliver 9 million tonnes and Transneft - 6 million tonnes a year. In exchange for the deliveries, Rosneft received $15 billion from Chinese banks and Transneft received $10 billion. The loan agreement is denominated in dollars.

Transneft obtains the oil it delivers to China from Rosneft.