Bank of China to lend Gazprom 2 bln euros

The loan will finance the construction of the Power of Siberia pipeline.

The loan will finance the construction of the Power of Siberia pipeline.

Reuters
The 5-year loan will finance the Power of Siberia pipeline.

Gazprom will borrow 2 billion euros from the Bank of China, the Russian energy giant said in a statement on March 3.

“Today in Shanghai, Gazprom, and Bank of China Limited, London Branch concluded an agreement on granting a loan in the amount of 2 billion euros for a period of five years,” Gazprom said in the press note.

The loan will finance the construction of the Power of Siberia pipeline, under which Gazprom will deliver 61 billion cubic meters of gas annually to China from 2019.

“This is the largest deal in Gazprom’s history based on the size of financing obtained directly from one credit organisation, and the first bilateral credit deal with a Chinese bank,” Gazprom said.

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