CEFC China Energy, which made headlines last month after its chairman was placed under investigation for financial crimes, has signed a larger, longer-term contract with Russia’s Rosneft for ESPO crude delivery, sources told Reuters.
The contract, signed late 2017, is for 12 million tonnes of oil to be delivered annually to China over five years. Shipments will start in July with around 5.92 million barrels of ESPO crude from the Russian oil giant, a 33% increase from the previous arrangement.
This comes as Russia’s crude shipments into Europe via the Baltic and Black Seas are due to fall by an average of 19% year-on-year in the first five months of 2018, according to reports seen by Bloomberg.
Ties between Rosneft and CEFC have been dubious ever since the corruption scandal saw the company chairman resign and rumours grew that the government was about to seize the firm. CEFC had prior to this committed to a $9 billion stake purchase in Rosneft.