Russia will supply the refinery located in China with 70 percent of its oil, with the other 30 percent to be delivered from Asia, he said, adding the refinery would buy oil at market prices.
Russia's biggest oil firm Rosneft owns 49 percent of the Russian-Chinese venture, with CNPC owning 51 percent. The refinery, with annual capacity of about 15 million tons, is expected to produce high-quality fuel to international standards.
The 200,000 b/d oil refinery is located in the Chinese coastal city of Tianjin.
The Tianjin city government said construction of the RMB21 billion ($3.07 billion) plant, to be located in its Binhai chemical area, could be completed by 2012.
Oil will be supplied through the Chinese spur of the ESPO pipeline which Prime Minister Putin inaugurated on the Russian side last weekend. The Chinese end of the pipeline awaits completion.
The ESPO Pipeline will deliver east Siberian crude to China