Silk Road Fund and Russia's Novatek sign agreements on Yamal LNG project

The Silk Road Fund entered into a set of binding definitive agreements with Russia-based Novatek as part of a transaction for acquiring an equity stake in the Yamal LNG project.

The agreements were signed in the presence of Chinese Premier Li Keqiang and his Russian counterpart Dmitry Medvedev on Thursday.

On September 3, 2015, the parties signed a binding framework agreement for the transaction.

In particular, the parties executed a share purchase and sale agreement in relation to a 9.9 percent equity stake in Yamal LNG. The closing of the transaction is subject to certain amendments to the intergovernmental agreement between Russia and China coming into force.

The parties also signed an agreement for the provision of a 15-year loan in the amount about EUR730 million (5.13 billion yuan) for the purpose of financing the Yamal LNG project.

Located at the Yamal Peninsula, the Yamal LNG Project is the world's largest project for the exploration and development, liquefaction, transportation and sales of natural gas.

With a designed annual output of 28 billion cubic meters of natural gas, the Project will be producing 16.5 MTPA of LNG and up to 1.2 MTPA of gas condensate per year. The project's current shareholders include Novatek, Total and CNPC.

Founded in December 2014, the Silk Road fund is a medium- to long-term development and investment fund. Following a philosophy of openness, inclusiveness and mutual benefit, the Fund provides investment and financing support for trade and economic cooperation and connectivity under the Belt and Road Initiative. It operates based on the principals of market orientation, international standard and professional excellence.