China, Russia sign $25b energy deal

China and Russia signed a US$25 billion, 20-year energy deal in Beijing on Tuesday, AP reported, citinng comments by Russia’s state oil pipeline monopoly, Transneft. Under the terms of the deal, China Development Bank will lend US$15 billion to Rosneft – Russia’s state-owned oil major – and US$10 billion to Transneft. Both companies are struggling to raise capital due to tightened lending and falling oil prices. In return, Russia will provide China with 15 million tons of oil each year for 20 years. Russian Deputy Prime Minister Igor Sechin’s led the delegation to Beijing to sign the deal, which had been endangered by disagreements over interest rates and state guarantees for the oil supply. Sechin did not provide details on the Chinese loans, though he said the credit terms were satisfactory.