Novatek wants to get money from Old World

Novatek still hopes to raise up to $600 million from the European and Japanese export credit agencies for the Yamal LNG project. It’s most likely to receive funding from the Italian agency SACE. Although now, after an agreement with the Chinese banks, Yamal LNG is not too needs a European loan, receiving this money on the background of US sanctions is important for Novatek as a precedent.

The extraordinary meeting of Novatek’s shareholders has approved the involvement of up to $19 billion from various banks as project financing for the production of liquefied natural gas on the Yamal Peninsula (Yamal LNG). Since Novatek has already agreed to attract $18.4 billion ($12 billion from Chinese banks, $4 billion from Sberbank and Gazprombank, as well as approximately $2.4 billion from the National Welfare Fund), therefore, the company expects to raise up to $600 million more. Last week, head of Novatek Leonid Michelson said that the company continued to negotiate with export agencies - Italian SACE, French COFACE and Japanese JBIC – on funding, which may come in the third quarter. However, according to the Kommersant’s sources, familiar with the situation, COFACE almost certainly won’t give money, but the greatest hopes are connected with the Italians.