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Russia to Sell China More Oil

Sinopec, China' No. 2 oil company, is expected to import 17 million tons of crude oil from OAO Yukos Oil Co -- Russia's second largest oil firm -- via a railway over the next four years. 

The first batch of the Russian oil will be delivered starting May 1 by a rail link from Russian territory to Erenhot in China's Inner Mongolia Autonomous Region.

 

The contract is part of Russia's move to considerably raise oil exports to China using trains.

 

Earlier last month, Yukos and Russian Railways agreed to more than double rail crude oil exports to 6.4 million tons this year, up from 3 million tons last year.

 

China National Petroleum Corp (CNPC) -- the nation's largest oil company -- will import 3.86 million tons, while Sinopec will purchase the remaining 2.6 million tons.

 

Analysts said China and Russia have great potential to increase oil trade. Russia has rich oil and gas reserves, while China needs huge oil imports to fuel its economic boom.

 

(China Daily April 27, 2004)

Russia to Keep Energy Program Promises to China
Russia to Double Oil Deliveries to China
Daqing Pipeline Still Most Feasible
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