Sberbank and Gazprombank may allocate $4 billion for Yamal LNG

Sberbank and Gazprombank have previously agreed to provide financing for the Yamal LNG project in the amount of $3 billion and $1 billion respectively, head of Novatek Leonid Mikhelson said on Thursday. The total amount of the project financing will be about $20 billion, but it is not completely fixed. Up to $15 billion will be provided by Chinese banks, Michelson recalled. He confirmed that the project financing is planned to be got in the middle of the year, "Chinese partners outlined their intention to finish the negotiation not later than in July". The loan will be provided for about 15 years.

According to a top manager of one of the Russian banks, the rate on loans of Sberbank and Gazprombank for Yamal LNG will be 8.5-9%. Approximately the same rate will be at the Chinese banks, he said. Novatek’s representative declined to comment.