Russia approves sale of Yamal LNG stake to Chinese fund
Russia's government has approved the sale of a stake in the Yamal LNG project to China's Silk Road Fund, reports said this week.
The deal is expected to bring another $2 billion in investment for the project.
The $27-billion project has been struggling to raise funds due to international sanctions against Novatek, the main shareholder in Yamal LNG. The plant is expected to start producing LNG in 2017.
The Russian government said the sale was approved last week by the cabinet and will be sent to parliament for further ratification.
Novatek, Russia's No. 2 gas producer, agreed last year to reduce its stake in Yamal LNG to 50.1% by selling a 9.9% holding to the Chinese fund. France's Total and China's CNPC each hold 20% stakes.
Investment in Yamal LNG has reached $15 billion so far, and the project has been trying to secure more funds from China and European export credit agencies.
The first Yamal LNG production unit, with an annual capacity of 5.5 MMtpy, is due to be launched in 2017. Peak production of 16.5 MMtpy is expected to be reached in 2021.
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