Rosneft seeks fee cut for China oil exports

Jan 25 | Updated: Jan 26 2005, 05:30am hrs
OAO Rosneft, the Russian state-owned oil producer that took over OAO Yukos Oil Cos largest oil unit, is seeking lower transport fees before it will start selling oil to China via rail, OAO Russian Railways said.

Russia will ship 530,000 tonnes of oil and oil products to China in February, Vladimir Yakunin, first vice-president at Russian Railways, said today in Moscow. The rail company will carry a total of 8 million tonne of oil and oil product exports next month. Yukos and OAO Lukoil, Russias biggest oil producer, will each ship 250,000 tonne to China and OAO Sibneft will supply 30,000 tonne, Yakunin told a press conference.

Russian Railways, the countrys state-owned rail monopoly, said yesterday that Rosneft would start exporting oil to China on February 1, replacing Lukoil and Yukos as the main suppliers to the Asian state.

China, which has sought to cut its dependence on Middle East oil producers, gets all of its Russian oil by rail.

Yukos reduced deliveries to the Asian state in 2004 as the company struggled to survive a tax investigation that led the government to file more than $20 billion of claims against Yukos.

Bloomberg