OREANDA-NEWS. August 12, 2010.  State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the Khabarovsk Oil Refinery (OJSC) entered into a number of credit agreements.

Under the documents signed, Vnesheconombank is to open two credit lines for the Khabarovsk Oil Refinery in the amount of 239 million US dollars and 218 million euros for a period of 12 years against the Spanish Export Credit Insurance Agency CESCE’s insurance coverage. Other funds in the amount of 240 million dollars are to be made available by way of opening a credit line for a period of 13 years.

The agreements on credit financing were signed subject to the Memorandum of Understanding signed by the parties in 2009.

The said funds will be used to finance the project aimed at the Khabarovsk Oil Refinery’s general reconstruction. The total value of the project is about 1.3 billion US dollars.

This project’s implementation will enable the Khabarovsk Oil Refinery to increase the output of top-quality motor fuels (diesel fuel, aviation kerosene, auto petrol) by 1.6 million tons per year. The Khabarovsk Oil Refinery would increase oil processing depth to 93%, an oil refinery complexity index (the Nelson index) will amount to 9.9 thus making it economically feasible to refine oil in the amounts of up to 4.5 million tons per year.

Vnesheconombank’s participation in financing this project was approved by the Bank’s Supervisory Board in December of 2009.