RIA Novosti cited Mr Nikolai Tokarev company head as saying that Russia Transneft oil pipeline monopoly hopes that China will redeem its debt for delivered oil within two to three weeks.

He said that "We have a pre-agreed position approved by high-ranking participants of the last visit. I am sure that we will close this issue within 2-3 weeks."

A source close to the situation has said China debt to Transneft amounted to USD 40.5 million as of the beginning of September. In mid-October, Deputy Prime Minister Mr Igor Sechin said the parties had settled all disagreements on the accumulated debt and the price formula.

Mr Tokarev said without disclosing details of the decisions that "We have found parameters of solutions which satisfy both sides. China is committed to repaying its debt, including penalties and interest. Russian experts are working on adapting pricing parameters to market conditions."

In January, Transneft and Russian oil giant Rosneft started crude supplies to China through the Eastern Siberia Pacific Ocean pipeline under a USD 22 billion deal but later said that China National Petroleum Corporation had underpaid for the crude supplies and unilaterally cut payments by 7%.

China repaid some of the debt in June, but later cut payments again. Russia has threatened to take the matter to court.

(Sourced from RIA Novosti)