Bank of China agrees to provide €2bn loan to Russian gas firm Gazprom
The Bank of China has agreed to provide €2bn loan to Russian state-owned energy firm Gazprom to expand its operations.
Gazprom and Bank of China's London branch have signed five-year €2bn loan facility agreement. It is claimed to be the single largest direct-loan secured from one financial institution by the company.
The deal allowed China to increase its investment in the oil and gas sector of Russia.
According to Gazprom, it is first bilateral loan facility agreement with a Chinese bank, especially after Western sanctions.
In May 2014, Gazprom had received a $400m contract from the China National Petroleum (CNPC) to supply natural gas for over 30 years.
Under the deal, Gazprom agreed to supply around 38 billion cubic metres of gas per year to the Chinese state-owned company.
Last November, Gazprom Marketing and Trading Singapore (GM&TS) entered into 10-year LNG sale and purchase agreement with Pavilion Energy's wholly-owned subsidiary Pavilion Gas.
Under the deal, Gazprom will supply liquefied natural gas (LNG) from its portfolio to Asian countries, including Singapore.
Image: Gazprom deputy management committee chairman Andrey Kruglov and Bank of China London branch's deputy general manager Wang Huabin.