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. Last Updated: 07/27/2016

Rosneft to Increase Exports to China

BEIJING -- China's state-owned Sinopec has signed an agreement with Rosneft to transport additional crude supplies via Mongolia, local media said Thursday, after months of delay.

Under the agreement, state-owned Rosneft will begin exporting 2.5 million tons of oil per year starting from August, a report by China Caijing News said.

Along with Rosneft's current agreement with China's top state-run energy group, CNPC, under which Rosneft supplies 8.9 million tons of oil to the country per year, total oil supplies from Russia would reach 11.5 million to 13 million tons in 2008, the newspaper said.

Russia has failed to meet its oil supply targets to China in the last three years as oil firms say the route is expensive compared with pipeline shipments to Europe. Last year, the country supplied 10 million tons (200,000 barrels per day) instead of the planned 15 million tons. The oil deal has seen repeated delays as both companies negotiated for lower railway tariffs.