VEB to be ready to finance construction of Yamal LNG

VEB together with Сhina Investment Corporation is ready to grant project financing to Novotek’s Yamal lNG. But agreements depend on the liberalization of LNG export.

VEB holds “serious talks” with Novatek on project financing for the Yamal LNG project, the structurization of terms is in the process now, the VEB’s Chairman, Vladimir Dmitriev stated. “We are ready to act through the Russian Private Equity Fund: either directly, or through a joint Russian-Chinese fund,” – he said. A representative of Novatek confirms the negotiations.

The Russian-Chinese investment fund was created with state-owned Сhina Investment Corporation (CIC) to invest into infrastructure facilities of the Far East. But sources of the Vedomosti in VEB and Novatek affirm that it isn’t a question of participation of CIC or Russian Private Equity Fund (RFPI) in capital of Yamal LNG. An interlocutor in VEB explains that independent or joint with the Chinese partner participation of RFPI in the Yamal LNG project financing depends on the amount of money, that will be asked by Novatek. “Today only China can give a lot of cheap money,” – he noted. VEB has given project financing to large industrial projects several times – for example, in 2010 the bank granted $1.4 billion for construction of a Sibur’s plant – Tobolsk-polymer.