Russian oil pipeline monopoly is ready to repay early a $10 billion 20-year loan to China, if it has to file a suit in a London court against its the Chinese over the price of oil it has supplied, a source close to negotiations said on Thursday.
"During the negotiations it was noted that the agreement on supplies of Russian oil to China is still being unilaterally violated by the Chinese. The oil supplied is not being paid for in full. It was said that if the dispute is sent to the London court, Transneft will be ready to repay its 20-year loan to China ahead of schedule," the source told RIA Novosti, after Moscow negotiations between Transneft and China Development Bank.
Repaying the loan would remove a potential bargaining chip the Chinese have against Transneft in the negotiations.
Transneft, which began oil supplies to China via the first stage of the Pacific pipeline in January, has said that China National Petroleum Corp. (CNPC) has underpaid for supplies, citing differences over tariffs. In May, Transneft said CNPC repaid some of its arrears.
