Khabarovsk Oil Refinery has plans to receive $697m worth of credit from VEB Bank, the firm said.

Loans will be reportedly sought in the form of three lines of credit to be repaid by 2022 and 2023.

The company is borrowing to continue reconstruction and production expansion, the firm explained.

Khabarovsk Oil Refinery is part of oil company Alliance that launched a large-scale upgrade of its subsidiary back in 2007 to boost oil refining from today’s 3.5 million to 4.5 million tons a year, while deepening refining from 63% to 92% and increasing light oils production from 56% to 72%, the source said.

According to Alliance president Musa Bazhaev, the total cost of the upgrade is estimated to be about $1bn. The renovated refinery is reportedly expected to start operation in Q1 2012.