Novatek and Finance Ministry find funding for Utrenniy terminal

TASS Russian News Agency | Jan 23, 2020 at 7:27 AM

DAVOS, January 23. /TASS/. Russia's largest independent gas producer Novatek and the Ministry of Finance have agreed on sources of financing for the construction of the state infrastructure of the Utrenniy terminal, which is needed for the next two LNG projects of the company in Gydan. The funds come from the taxes paid by Novatek for the sale of shares in the Arctic LNG-2 project, Head of Novatek Leonid Mikhelson told reporters on the sidelines of the World Economic Forum (WEF) in Davos.

"We were met halfway, we paid a lot of taxes from shareholders joining Arctic LNG-2. Amendments were made to the Tax Code that two-thirds of taxes were sent (to create the state infrastructure of the Utrenniy Terminal). An agreement was signed with Rosatom to create a state infrastructure for 40 billion rubles, which will be used to invest in expanding the shipping channel," he said.

Mikhelson added that the decision to finance state infrastructure for transshipment facilities in Kamchatka and Murmansk for 3 years will be made before April 2020.

At the end of 2019, it was reported that the Russian Ministry of Finance prepared proposals for the redistribution of funds from the budget to finance Novatek projects.

The port infrastructure is owned by the state, so financing of its construction will be provided by law from the budget of the Russian Federation.