Rosneft, a Russian oil company, agreed to a $270 billion deal this morning that will have it sending 365 million tons of oil to China over a 25-year period. The new supply of oil will begin shipping in July.
The transaction between Rosneft and China also includes an upfront payment of $65 billion.
The deal between the government-owned Rosneft and China is likely to help Russia increase relations with its neighbor.
Rosneft is increasing its oil trade and has been making deals worldwide. Earlier this year, the company expanded on a previous deal with Exxon (XOM), and last year it signed a joint venture with BP (BP).