ARC - Amid Growing Concern Over Arctic Petroleum, Big European Lenders Have Confidence in Russia's New Grand LNG Project
Green energy transition and industrial pressure on local Arctic environments notwithstanding, major financial institutions from Europe and Asia are ready to grant $9.5 billion to the Arctic LNG 2 project, Reuters reports.
A document obtained by the news agency shows that several of the world’s biggest lenders line up for participation in the major energy project now unfolding on the shore of great Gulf of Ob.
The Arctic LNG 2 project will be one of the biggest industrial projects in the Arctic ever. By 2024, almost 20 million tons of liquified natural gas is to be annually produced and exported from the remote tundra of Gydan.
Project operator Novatek has now secured project support from several of the world’s leading banks and financial institutions. According to Reuters, credits worth up to $9.5 billion are now being offered to the Russian developers.
Among the lenders are European institutions like the French state investment bank Bpifrance, German Euler Hermes and Italian SACE. The three institutions together offer up to $2 billion, while the China Development Bank reportedly grants $5 billion and the Japan Bank for International Cooperation — $2.5 billion.
Russian banks are reported to provide about $4,2 billion.
The heavy financial support comes amid mounting political pressure on Russia following the poisoning of opposition politician Aleksey Navalny, as well as the growing concern for climate change and environmental destruction in the Arctic.
Environmentalists fear that the growing industrial pressure on areas such as the Gulf of Ob could have irreversible effects on local ecosystems.