Oil contract with China amounts to $150bn

The amount of the agreement signed by YUKOS and China amounts to $150bn that are expected to be raised over 25 years, YUKOS President Mikhail Khodorkovsky declared after the ceremony of signing the document. As a result of the implementation of this deal the Russian budget will get $60bn in tax revenues. Moreover, Russia will be able to develop oil and gas fields in Eastern Siberia. "If we work for some 10 to 15 years and discover new fields in Eastern Siberia, we will manage to lay the pipeline further, to China's Pacific coast", YUKOS President stressed. According to estimations, oil supplies within the framework of this contract will cover 10 percent of China's gas and oil consumption.

Moreover, Khodorkovsky noted that the second agreement on oil supplies by railroad was worth some $1.1bn. The term of this contract is three years and it envisages 2m tons of oil supplies annually, which will bring from $300m to $400m to Russia's budget.

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