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.
Learn about the Asian markets and CFD trading at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.