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China Development Bank will coordinate the attraction of 20 billion dollars to the project “Yamal LNG”

The Chinese side will allocate $ 20 billion for the Yamal LNG project, Gennady Timchenko said at the St. Petersburg International Economic Forum. This will avoid problems with financing the construction of a liquefied gas plant, which could be a consequence of the sanctions imposed against Timchenko.

According to Timchenko, financing will be attracted from the China Development Bank, which will act as a coordinator. In addition, Gazprombank and VEB participate. The co-owner of NOVATEK noted that the company continues negotiations to sell another 9% of Yamal LNG "with Indians and Chinese." In addition, the Russian Direct Investment Fund has become interested in the project.

A week earlier, Total head Christophe de Margerie warned that due to sanctions against Russia, the timing of the Yamal LNG project could be shifted. “We may be slightly affected by this in the short term due to funding problems or access to some materials,” Margerie said at Total's AGM.

In addition, the American Export-Import Bank of the United States refused to participate in Yamal LNG due to the sanctions. In April it became known that negotiations on entering the project were suspended by the Japanese companies Mitsubishi and Mitsui, which wanted to acquire 10% minus one share.

According to Renaissance Capital analyst Ildar Davletshin, the fact that the Chinese are ready to cover almost the entire volume of project financing (the cost of the entire project is about $ 27 billion - RBC's note) shows that NOVATEK's contacts with CNPC and other enterprises from the PRC are becoming more active.

The Yamal LNG project provides for the construction of a gas liquefaction plant with a capacity of up to 16,5 million tons per year. The Yuzhno-Tambeyskoye field is used as a resource base for the plant. The gas liquefaction plant in Yamal is to become the second in Russia after Gazprom's plant at Sakhalin-22. The main consumers of gas from Yamal LNG will be the states of the Asia-Pacific region. The commercial operation of Yamal LNG is to begin in 2017. The project is considered one of the most expensive in the world.

Timchenko is a shareholder in NOVATEK, which owns 60% of Yamal LNG. The Chinese company CNPC controls 20% of the shares, while the French Total controls the remaining shares.

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