Rosneft has raised a credit under the contract with CNPC

It has been revealed that the $70 billion of advance payment for oil supplies to China won’t be free for Rosneft but will cost 2.6% per annum.

The details of the giant contract of Rosneft and CNPC for supplies of 365 million tons of oil over 25 years for $270 billion have been published from the additional agreement described by ITAR-TASS. Rosneft will get a large part of the sum at a rate of $70 billion in advance, the Russian President, V. Putin says.

Rosneft will pay for the advance as for a plain credit. The iInterest rate will 6-month LIBOR + 229 basis points, i.e. 2.6414% per annum now. Taking into account the sum of $70 billion announced by Mr. Putin, Rosneft would pay to CNPC $1.8 billion a year for the advance, but the advance will be transferred in parts.