FT: Moscow Offers Bigger Stakes in Energy Projects to Lure Chinese

A flagship Russian gas project may soon test Moscow’s newfound willingness to cede greater control of its energy assets to Beijing in exchange for much-needed Chinese financing.

Arkady Dvorkovich, Russia’s deputy prime minister, said that China National Petroleum Corporation could raise its stake in the $27bn Yamal liquefied natural gas project which is majority owned by Novatek.

“Novatek already has a Chinese partner in [the] Yamal LNG project and they have a 20 per cent share and they are considering increasing the share in the project,” Mr Dvorkovich said.

Russia’s growing eagerness to harness Chinese funding to get energy projects off the ground will be in focus this week as president Vladimir Putin holds a bilateral summit with his Chinese counterpart Xi Jinping in Moscow. But despite the inevitable smiles and handshakes, Chinese oil companies show no rush to invest in Russia, and energy deals between the two countries — the world’s largest energy exporter and its top consumer — have been slow to materialise. MORE