Nord Stream 2 Discussing Long-Term Investments From Chinese Banks

Nord Stream 2 AG, the operator of the Nord Stream 2 gas pipeline project, has hold preliminary consultations with Chinese banks, discussing the possibility to attract long-term investments for funding the project, the Russian Vedomosti newspaper reported on Thursday.

MOSCOW (Sputnik) — The news outlet reported citing own sources that the company had been actively engaged with consultants and was preparing information to present it to potential creditors in the coming months.

The Nord Stream 2 pipeline is expected to transport up to 55 billion cubic meters of natural gas from Russia to Germany across the Baltic Sea alongside the original Nord Stream while bypassing Ukraine, aiming to enhance the security of supplies.

In April, Nord Stream 2 AG signed a deal with OMV, Engie, Royal Dutch Shell, Uniper and Wintershall where the five companies agreed to provide part of long-term financing of the gas pipeline project, estimated at 9.5 billion euros ($10.6 billion). The company also expressed hope that Russian banks would participate in financing of the project.

Earlier in May, the US Senate voted in favor of new anti-Russia sanctions over Moscow’s alleged interference in the US presidential election in 2016. The sanctions target the financing of Russian oil and gas companies, as well as the people and entities investing in the construction of Russian export pipelines, such as Nord Stream 2. A number of European politicians, including German Foreign Minister Sigmar Gabriel have criticized the move.