Gazprom and Novatek don’t agree on cooperation continuation

The partners haven’t been able to determine amounts of investments and shares in the Yamal projects that they have been discussing for over a year. Analysts think that the deal was initially unprofitable for Novatek.

Gazprom and Novatek haven’t been able to agree on creation of a joint venture for work in Yamal. The duration of the cooperation agreement expired in February, but the parties didn’t sign new documents, two sources, close to different parties of the negotiations told the Vedomosti. However, the Vedomosti’s interlocutors don’t feel emboldened to say that the documents never will be signed and it was put paid to the cooperation. The negotiations between Gazprom and Novatek are continued, a source, close to Gazprom, assured. Representatives of Gazprom, Novatek and Total (it owns 20% in the Yamal LNG and 16.4% in Novatek) refused to comment on.