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    Earthquake suspends Transneft oil supplies to China

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    Russia's Transneft oil pipeline monopoly halted oil supplies to China via the Eastern Siberia Pacific Ocean (ESPO) pipeline following a 5.9-magnitude earthquake on Russia's far eastern Amur region, spokesman Igor Dyomin said on Friday.

    Russia's Transneft oil pipeline monopoly halted oil supplies to China via the Eastern Siberia Pacific Ocean (ESPO) pipeline following a 5.9-magnitude earthquake on Russia's far eastern Amur region, spokesman Igor Dyomin said on Friday.

    "Oil supplies to China are suspended, inspection of the damaged equipment is required. The energy supply has been damaged by the earthquake," the spokesman said.

    The pipeline carries 300,000 barrels of oil to China per day.

    In January, Russia's Transneft and Rosneft oil giant started crude supplies to China through the ESPO pipeline under a $22 billion deal but later said that China National Petroleum Corporation had underpaid for the crude supplies and unilaterally cut payments by seven percent.

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

    On Tuesday, Russian Deputy Prime Minister Igor Sechin said the parties had settled all disagreements on the accumulated debt and the price formula.

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