European majors managed to finance Nord Stream 2 by 1 bln euros prior to U.S. sanctions
BERLIN. June 15 (Interfax) - European majors Engie, OMV, Shell, Uniper and Wintershall managed to provide funding for the Nord Stream 2 project prior to the latest initiatives adopted by the U.S. Senate against the gas pipeline's construction.
"Money has entered the Nord Stream 2 company's accounts and is already at work on the project," Gazprom deputy CEO Alexander Medvedev told a briefing during the international conference "Prospects of Russia-EU Energy Cooperation. Gas Aspect" in Berlin.
He said that the project received "over 1 billion euros" from foreign partners and that all partners are participating in the financing with equal shares.
The director of the Nord Stream 2 project Henning Kothe said that European companies are providing half of the project's 9.5 billion euro cost. Thus each company has a liability of 950 million euros. He did not say whether Gazprom has already provided some financing to the project or when Nord Stream 2 will require new tranches. Kothe said that the company is planning to organize project financing for 70% of the cost, but European companies and Gazprom are ready to finance the half project in the case of problems with project financing.
"We completed work on the organization of project financing for the full amount from a group of our foreign partners. We have liabilities for the financing of the entire amount. But this doesn't mean that the work is completed, we face talks with the banking community to organize project financing which we will be launching in the nearest future, perhaps even before the start of the holiday period," Medvedev told journalists.
Asked which banks might take part in Nord Stream 2 project financing, Medvedev said: "If we remember Nord Stream 1, there was such an appetite that it was necessary to reduce the appetite of those wanting to finance. It is no coincidence that Nord Stream 2 is repeating Nord Stream 1. The banking community is well acquainted with the project."