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From Rosneft China Exports Will Pipe $2.5Bln to the Budget per Year

SEOUL — The budget will be boosted by additional revenue of up to $2.5 billion annually in export duties paid by state-run Rosneft for its oil supplies to China, the energy minister said Wednesday.

Rosneft's chief executive said Tuesday that the company plans to pump seven million tons of oil to China annually starting from 2014.

"Export duties will be levied on these seven million tons, and the budget will get additional [income of] $2.3 billion to $2.5 billion," Energy Minister Alexander Novak said.

The pipeline to China passes through Kazahkstan.

Rosneft signed tentative agreements on Monday with Kazakhstan's national energy company, KazMunayGaz, and national pipeline operator KazTransOil to ensure safe transit of its oil to China.

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