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China’s Silk Road Fund to buy into Russian LNG project

Updated: Dec 18,2015 8:53 PM     Xinhua

China’s Silk Road Fund, a medium- to long-term investment fund, will buy 9.9 percent of a Russian liquefied natural gas (LNG) project.

The Silk Road Fund said on Dec 18 that it entered into a set of binding agreements with Russia-based natural gas producer Novatek on Dec 17 in the presence of Premier Li Keqiang and Russian Prime Minister Dmitry Medvedev.

The Fund will buy 9.9 percent stake in Novatek’s Yamal LNG project and provide a 15-year loan of around 730 million euros (about $790 million) to finance the project.

Located on the Yamal Peninsula, the Yamal project is the world’s largest natural gas development, liquefaction, transportation and sale project, with a designed annual output of 28 billion cubic meters.

The Silk Road Fund was set up in December 2014 to promote investment and financing cooperation between China and other countries, serving the China-proposed Belt and Road initiative, which encompasses the Silk Road Economic Belt and the 21st Century Maritime Silk Road.