Russian companies will supply about 70 percent of the required oil at market prices for a joint refinery project involving China's CNPC and Russia's Rosneft, China's Energy Minister Zhang Guobao said on Tuesday.

"The issue is resolved following friendly talks," Guobao said after an energy cooperation subcommittee meeting between the two countries.

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-Chineese 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.

MOSCOW, August 31 (RIA Novosti)