Yamal LNG gets $12-billion in Chinese loans amid sanctions

MOSCOW (Bloomberg) -- Yamal LNG signed agreements for financing with two Chinese banks after more than a year of discussions after its biggest shareholder, Novatek OJSC, was targeted by U.S. sanctions.

“The project is progressing in accordance with the approved schedule,” Yamal LNG General Director Evgeniy Kot said in an emailed statement. “Agreements with the Chinese banks allow to complete the project without additional funding by the shareholders.”

The accords signed with the Export-Import Bank of China and the China Development Bank are for two 15-year credit line facilities for 9.3 billion euros ($10.6 billion) and 9.8 billion yuan ($1.51 billion), according to the statement. Yamal LNG is 50.1% owned by Novatek, Russia’s second-biggest natural gas producer. Total SA and China National Petroleum Corp. each hold 20%, and Silk Road Fund has 9.9%.

The largest project to liquefy natural gas in the Arctic has pushed ahead amid concerns that U.S. sanctions limiting financing may derail its attempts to borrow. The measures were levied after Russia annexed of Crimea and supported a separatist insurgency in Eastern Ukraine.