The bank admitted, though, that in acting as agent for Russian foreign trade operations it had taken a loan from a group of Chinese banks to fund Russia’s long-term exports to China

The bank admitted, though, that in acting as agent for Russian foreign trade operations it had taken a loan from a group of Chinese banks to fund Russia’s long-term exports to China. On Tuesday, Finance minister Alexei Kudrin said Vnesheconombank had borrowed $6 billion in December 2004 to fund Rosneft’s acquisition of Yuganskneftegaz. As last year closed, Russia’s central bank said government agencies had borrowed about $10 billion in December. “It seems this includes the loan Vnesheconombank obtained from Chinese banks to finance Rosneft’s deal,” Kudrin said. But some media reports said the money was used for the purchase of Yuganskneftegaz. Sergei Oganesyan, director of the federal energy agency, said Tuesday that Rosneft paid for Yuganskneftegaz with funds it borrowed from Russian banks and with an $6 billion advance payment from China’s CNPC. A 76.79 percent stake in Yuganskneftegaz was sold off at auction in December, bid for by Gazprom subsidiary Gazpromneft, and the unknown Baikalfinancegroup, closing the deal at RUR 260.75 billion (about $9.35 billion). Rosneft bought Baikalfinancegroup later. Yuganskneftegaz is returning to normal, resuming full-scale production. Rosneft, its new owner, said Yuganskneftegaz had also resumed drilling operations, including work at the promising oilfield of Malo-Balyksky. Company management is implementing measures developed by Rosneft to move its newcomer out of crisis, a Rosneft statement said.