Oao Novatek News

The massive $27 billion Yamal LNG liquefied-natural-gas venture in the Arctic Circle, a centerpiece of President Vladimir Putin’s plan for Russia has been squeezed by U.S. restrictions on OAO Novatek, says a report in the WSJ. Through this project, Russia wants to reduce its heavy dependence on natural-gas customers in Europe by increasing exports to Asia and, in turn, cementing Russian ties with China. Barred by the sanctions from raising long-term dollar loans, Novatek and its foreign partners, Total SA of France and China National Petroleum Corp., are having to seek more money from Chinese lenders than they had intended, in addition to kicking in nearly $10 billion of their own, according to company executives.

According to a March 3 report from Bloomberg, Total SA (FP), Europe’s third-biggest oil company, agreed to buy 12% of OAO Novatek and join the Yamal LNG project to snap up reserves as international energy producers rush to explore Russia’s Arctic resources.   (Source: Bloomberg)