Novatek may sell 10% of its LNG project

Novatek looks for alternative to attract debt financing through the sale of 10% minus 1 share in LNG project Yamal LNG. This follows from the list of orders of President Vladimir Putin after the meeting in February.
Money for Yamal

"The Government of the Russian Federation in cooperation with Novatek have been asked to consider the possibility of reducing the share of Novatek in the share capital of Yamal LNG to the level of 50% plus one share," – this is written in the list of orders of President Vladimir Putin on the results of one of the February meeting with the head of the state on economic affairs.

The fact that this issue was discussed with Vladimir Putin was confirmed by a source in the Ministry of Energy. The company needs funds to finance the LNG project, and it is looking for an investor in China or India for a minority stake, the official explained. Two interlocutors among the members of the Novatek’s Board of Directors also know that the company needs additional funding for the Yamal LNG’s needs in connection with the sanctions and the changed conditions of the attraction of funding on foreign markets. However, both said that the issue of the possible deal and even this kind of negotiations wasn’t included in the agenda of the Novatek’s Board of Directors in the current year.

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