The Arctic LNG II project being developed on the Gydan Peninsula in northern Siberia has amended a project financing agreement signed earlier in 2021 with several Russian banks to increase the maximum allowed under the facility.
The project, led by Russian natural gas company Novatek, signed the original agreement with a syndicate of Russian banks including PJSC Sberbank, Gazprombank and its subsidiary Bank GPB International SA, State Development Corporation VEB.RF and Bank Otkritie Financial Corp., public joint-stock company.
Shareholders approved this external financing in April 2021 out of a total requirement of US$21Bln.
The fund-raising is planned to be split three ways between Russian, Chinese and Japanese and European financial institutions combined.
Arctic LNG said the accord has now been amended to increase the maximum Russian financing amount of the 15-year credit line currently at €5.7 billion ($6.6Bln).
“The amendment signed with the Russian banks is part of the external financing package for the Arctic LNG II project,” said a statement.
“The final amount of financing from the Russian banks within the maximum amount of up €5.7Bln will be determined once the international part of the project’s external financing is finalized,” the project explained.
Analysts said the move means that the Russian banks could increase their participation if fewer non-Russian financial institutions come forward.
