China to continue talks with Russia on $25bn loan

China and Russia will continue talks over a proposed US$25 billion loan package for cash-poor Russian energy companies in exchange for long-term crude oil deliveries, AP reported. Talks reportedly broke down last week after disagreements on interest rates and state guarantees. The loans under consideration include US$15 billion to Rosneft, a major Russian state-owned oil firm, and US$10 billion to oil pipeline monopoly Transneft. Both firms are struggling to secure financing due to the global financial crisis and falling oil prices. In return Russia is promising to supply 15 million tons of oil per year over 20 years through a pipeline project agreed to during Chinese Prime Minister Wen Jiabao’s visit to Moscow in October.