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Rosneft Buying $2 Billion Oil as Venezuela Seeks Funding

Petroleos de Venezuela SA will receive a $2 billion pre-payment for oil and fuel supplied to OAO Rosneft as South America’s biggest crude exporter seeks funds amid domestic shortages and the world’s fastest inflation.

Rosneft, Russia’s largest oil producer, will make the payment to Venezuela’s state oil producer PDVSA in exchange for more than 1.6 million tons of oil and 7.5 million tons of oil products during a five-year period, Rosneft said in a statement posted on its website May 24. On March 7, Venezuela signed a memorandum of understanding with Rosneft for $2 billion in financing for oil projects in Venezuela.