Under an agreement signed between Russia and China in Beijing earlier in the day, a branch of the ESPO oil pipeline will be built toward China and Russia will supply China with 15 million metric tons (110 million barrels) of crude annually for 20 years.
"The construction of the leg should be synchronized with the construction of the first line of the ESPO pipeline," the statement quoted the company's vice president, Mikhail Barkov, as saying.
The pipeline's first leg was launched in October 2008 in the reverse direction, running westwards. The construction of the pipeline, designed to bring Russian oil to the lucrative Asia-Pacific market, is due to be completed later this year, which will enable ESPO to pump its first oil eastwards.
Barkov also said that China's $10 billion loan to Transeft would primarily be invested in the construction of the Chinese leg.
"In addition, there are projects that will contribute to the functioning of the entire eastern pipeline and this leg in particular," the Transneft official said.
A source close to negotiations said on Tuesday China would extend a $15 billion loan to Russian state-run oil giant Rosneft against the guarantee of oil supplies, while Transneft's $10 billion would be granted with the infrastructure as collateral.
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Russia and the West Have Conspired to Tear Ukraine Apart. Both Sides Must Stand Down Now or Face the Consequences
We’re now witnessing the consequences of how grossly both Russia and the West have overplayed their hands in Ukraine. It is urgently necessary that both should find ways of withdrawing from some of the positions that they have taken. Otherwise, the result could very easily be civil war, Russian invasion, the partition of Ukraine, and a conflict that will haunt Europe for generations to come.