Russia has signed a pipeline deal with China for a new overland supply route for Siberian oil.
Under the agreement, Russian pipeline monopoly Transneft and China National Petroleum Corp will build a spur line to carry 15 million tonnes a year of oil (300,000 barrels per day) from 2009.
Deputy Prime Minister Igor Sechin, said Russian oil firms would receive "considerable" loans from China in return for increased oil supplies.
The signing ceremony in Moscow on Tuesday was attended by Russian Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao.
The cost of the pipeline spur has been estimated at $US800 million. It will branch off the East Siberian-Pacific Ocean pipeline at the Russian town of Skovorodino and run to the Chinese border.
The ESPO pipeline will carry 600,000 barrels per day. It is estimated to cost more than $US14 billion and is scheduled to be finished by the end of next year.
