8 June 2009
VTB starts servicing a loan by China Development Bank to Russian oil companies
VTB as a bank-agent has started servicing loans extended by China Development Bank to the Russian companies, in particular, Rosneft and JSC Transneft. On 26 May 2009, the first tranche of USD 400 million was disbursed to Rosneft.
Under multilateral agreements VTB Bank acts as a settlement agent for the loan and export contracts of the Russian companies.
The total loan to Rosneft is USD 15 billion. The funds will be channeled to develop Russian-Chinese cooperation in oil industry under the intergovernmental agreement signed by Igor Sechin, Deputy Prime Minister, and Wang Qishan, Vice Premier of the State Council, in April 2009. In addition to credit funds the agreement stipulates long-term oil supplies to the People’s Republic of China and construction of the Russian part of the pipeline from Skovorodino station to the borders with China. In accordance with credit documents and purchase agreement with China National Oil Corporation the loans will be repaid through oil revenues.
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