Russia's Yukos oil company is suspending oil exports to the Chinese National Petroleum Corporation, or CNPC, because it can't afford to pay transport expenses.

Yukos plans, however, to honour its commitment to another major Chinese oil company, Sinopec, supplying an anticipated 5 and a half million barrels by the end of the year.

Interfax reports Yukos' executive board made the decision this weekend. Yukos had planned to supply 7.3 million barrels to CNPC by the end of the year. The report quotes an unidentified Yukos spokesman as saying Russian exports for Sinopec are more critical than for the CNPC.

But Russian Prime Minister Mikhail Fradkov pledged last month that Russia would keep meeting its oil export commitments to China.

Reports say China's energy needs are soaring as its economy booms. Its crude oil imports from Russia jumped 73 percent last year to 38 and a half million barrels.

Chinese Premier Wen Jiabao is due in Moscow on Wednesday, and he's expected to seek even more oil during his talks.

Source: CRIENGLISH.com