Gazprom and Bank of China sign 2 billion euro, 5 year loan

Gazprom hit hard by western sanctions

Gazprom

Andrey Kruglov of Gazprom and Wang Huabin of the Bank of China sign the 2 billion euro deal in Shanghai on Thursday.  Gazprom photo.

MOSCOW _ The Bank of China will give Gazprom a 2 billion euro ($2.2 billion), five-year loan, the Russian state-run energy company’s largest loan agreement from a single credit institution.

In a Thursday press release, Gazprom said “this is the largest deal in terms of the amount of financing attracted directly from one financial institution and the first bilateral loan facility agreement with a Chinese bank.”

Driven by China’s growing energy needs, Beijing has been investing tens of billions of dollars abroad to help other countries develop their natural gas resources that can then be exported to China.

In May 2014, the state-owned China National Petroleum Corporation signed a $400 billion contract to buy natural gas from the state gas monopoly over 30 years.

Gazprom has been hard hit by Western sanctions, which tightened the terms and restrictions on loans from Western lenders to the company.

The Canadian Press

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