Moscow, Paris agree on France’s risk-free financing of Yamal LNG

MOSCOW, Jan 25 (PRIME) -- Moscow and Paris have agreed on French banks’ risk-free financing of Yamal LNG project, Economic Development Minister Alexei Ulyukayev told reporters on Monday without disclosing financial details of the deal.

“I believe, yes,” he said answering a corresponding question.

Currently, Novatek owns 60% in Yamal LNG, China’s CNPC 20% and France’s Total 20%. In December 2015, Novatek agreed to sell 9.9% in the project to China’s Silk Road Fund.

Earlier in January Novatek CEO Leonid Mikhelson said that the shareholders had agreed on a U.S. $20 billion financing, but faced difficulties amid Western sanctions against the project.

The Yamal LNG project envisages construction of a 16.5-million-tonne liquefied natural gas (LNG) plant on the basis of the Yuzhno-Tambeiskoye field on the Yamal Peninsula. The first stage may be launched in 2017. The project’s total cost stands at U.S. $26.9 billion.

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