Italy suspends financing of Russia’s Arctic LNG terminal 2

Arctic LNG 2 plant will be built in Siberia. The cost of Russian investment by Novatek is $21 billion. Half a billion euros were to come from Italian loans granted by state-owned investment bank Casa Depositoi i Prestete (CDP) and the Russian branch of Italy’s largest bank, Intesa Sanpaolo. Reuters reported that Italy is withdrawing from the project.

It wasn’t long after they joined him. The decision to participate in the investment was made by Italian financial institutions in recent weeks. The loan was secured by SACE, the Italian foreign trade insurance institute, which has already secured projects and investments in Russia worth nearly €5 billion.

As per previous plans The Arctic LNG 2 terminal was scheduled to start operating in 2023 and reach full production capacity of approximately 20 million tons of liquefied natural gas (LNG) in 2026. Novatek announced in November last year that it had concluded loan agreements worth 9.5 billion euros with foreign and Russian banks, thus meeting external financing for the project, the Palestinian News Agency reported.

The shareholders of Arctic LNG 2 are Russia’s Novatek (60%), France’s TotalEnergies (10%), Chinese companies CNPC (10%) and CNOOC (10%), and the Japanese consortium of Mitsui & Co, Ltd. and JOGMEC: Japan Arctic LNG (10%).