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Gazprom: US Sanctions Won’t Affect Nord Stream 2 Funding Timing

Thursday 22 June 2017

MOSCOW (Sputnik) — Russia’s Gazprom energy company is not adjusting the timing and options of raising funds for its Nord Stream 2 pipeline project because of new US sanctions, Deputy Chairman of Gazprom’s Management Committee Andrey Kruglov said Thursday.

Kruglov said at a press conference that:

[…] news of the planned sanctions on Nord Stream 2 forces us to analyze various scenarios for the implementation of this project […] At present, we are so far not making any adjustments neither on our approaches to the implementation of Nord Stream 2 on the principles of project financing, nor on the timing of its implementation.
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Sputnik / Sergey Guneev)

Last week, the US Senate voted in favour of new sanctions against Russia over its alleged interference in the US presidential election in 2016. The new package of sanctions included companies contributing to the construction of Nord Stream 2. The bill is yet to be approved by both the House of Representatives and the administration of US President Donald Trump.

In the same time, Nord Stream 2 AG, the operator of the Nord Stream 2 gas pipeline project, has hold preliminary consultations with Chinese banks, discussing the possibility to attract long-term investments for funding the project, the Russian Vedomosti newspaper reported on Thursday. The news outlet reported citing own sources that the company had been actively engaged with consultants and was preparing information to present it to potential creditors in the coming months.

The Nord Stream 2 pipeline is expected to transport up to 55 bln m³ of natural gas from Russia to Germany across the Baltic Sea alongside the original Nord Stream while bypassing Ukraine, aiming to enhance the security of supplies.

In April, Nord Stream 2 AG signed a deal with OMV, Engie, Royal Dutch Shell, Uniper and Wintershall where the five companies agreed to provide part of long-term financing of the gas pipeline project, estimated at €9.5 bln ($10.6 bln). The company also expressed hope that Russian banks would participate in financing of the project.

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