Russia may give the green light to China National Petroleum Corporation (CNPC) to raise its stake in the US$27 billion Yamal liquefied natural gas project in Sabetta, according to the Financial Times.
“Novatek already has a Chinese partner in [the] Yamal LNG project and they have a 20 percent share and they are considering increasing the share in the project,” the paper quoted Russian deputy prime minister Arkady Dvorkovich as saying.
The move to cede greater stakes in energy assets to Beijing comes as Moscow needs Chinese financing amid a fall in oil prices and Western sanctions, the paper noted.
Novatek was placed on the US sanctions list last July, prompting Russia to open the door wider for Chinese investors.
A Chinese-led financing package has been delayed several months, but a deal is likely in the near future once the additional stake sale is completed, the report said.
Chinese banks are set to lend up to US$13.5 billion to the project, according to the report.
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