Russian state-owned company Rosneft has confirmed it is going to double its oil supplies to China after agreeing a new deal with the country.
The firm will supply 300,000 barrels of oil a day to China starting from 2015, in a deal expected to last for 25 years and is worth a total of $270 billion (£175 billion).
Russian president Vladimir Putin confirmed the deal and stated Rosneft is going to get $70 billion of the money up front.
Rosneft's chairman Igor Sechin told reporters in St Petersburg that it is one of the biggest ever oil contracts to be completed by a Russian company.
The world's biggest oil producer Russia now seems to be preferring to deal with rising powers in Asia such as China, rather than with European countries.
On the back of the announcement of the deal, the share price of Rosneft was up by 0.5 per cent on the start of the day's trading. At 15:30 BST, its stocks were selling for 221.69.
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