Gazprom proposes to manage without the state – the Government doesn’t want to pay for pipe to China

The idea of ​​Gazprom’s recapitalization, suddenly voiced by Vladimir Putin last week, was first publicly questioned by parliament’s officials yesterday. According to the Finance Minister, Anton Siluanov, Gazprom doesn’t need additional money from the state to fulfill the contract with China, as the company will receive an advance payment in the amount of $25 billion. However, according to the Kommersant’s information, the Government will be instructed to study the idea of ​​ the recapitalization and to report on it to the President in September.

The Finance Minister, Anton Siluanov said yesterday that there was no reason to state that Gazprom was in need of recapitalization on account of public funds. Two weeks ago, during the meeting of presidential FEC commission, Vladimir Putin instructed the Government to consider such variant: in his view, gold and foreign currency reserves (which include as the Reserve Fund, as the National Welfare Fund) could be a source of funding of the infrastructure for the gas contract with China's CNPC. The cost of the Power of Siberia gas pipeline to China is estimated by Gazprom at $25 billion. "For a while we see that Chinese banks give a loan to Gazprom for $25 billion, there are resources to build a gas pipeline network," - said Anton Siluanov. He added that, if the need for recapitalization still appears, the Ministry of Finance will consider possible variants of its implementation.

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