Russia and China to Maintain Oil Price for ESPO Pipeline

Russia and China have decided to maintain the oil price formula for Russian crude oil supplies to China through the East Siberia-Pacific Ocean (ESPO) oil pipeline, which has been built and operated by Transneft.

Russian state-owned Transneft and Rosneft began supplying crude to China through the ESPO pipeline in January under a $22bn deal and claimed that China National Petroleum Corporation had underpaid for the crude supplies.

The Russian firms said last week that China repaid some of its debt for the crude supplies made, reports RIA Novosti.

Russia-based Gazprom also plans to finalise pricing talks with China this month on future gas supplies.