The government approved the intergovernmental agreement with China on the deal on Yamal LNG

Moscow. December 15. The Russian government approved the text of an intergovernmental agreement with China about the purchase of a silk road Fund (SRF) of the shares of Yamal LNG, the corresponding order of Prime Minister Dmitry Medvedev on December 11, posted on the official Internet portal of legal information.

According to the document, the Russian party shall allow (a Chinese – supported) purchase Silk Road Fund Co in NOVATEK’s affiliated persons or 9.9% of “Yamal LNG” in addition to the shares already belonging to CNP–°.

To support the project the Russian side will provide budget financing in the amount of 150 billion rubles by purchasing unsecured bonds “Yamal LNG”. Resell them is not planned.

Yamal LNG project the LNG plant on the basis of the South Tambeyskoye field on the Yamal Peninsula. There are three lines of 5.5 million tons of LNG per year. Shareholders are NOVATEK (60%), French Total (20%) and Chinese CNPC (20%). After the closing of the transaction, the shareholder structure of Yamal LNG will be as follows: NOVATEK (50.1 per cent), Total (20%), CNPC (20%), SRF (9.9 per cent).