In what can only be seen as another “symbol of sanctions defiance”, on March 27 China announced it would be providing French oil giant Total with $15 billion to invest into the Yamal LNG project in northern Siberia. Despite some of the harshest Western sanctions placed upon Yamal’s majority stakeholder, private Russian gas company Novatek, the project has hardly been derailed. What’s more, Yamal offers a glimpse into a world where Russia is no longer dependent on the West for financing.
The $27 billion investment project in the Yamal Peninsula, owned by Novatek (60%), Total (20%) and China’s CNPC (20%), aims to tap into northwest Siberia’s vast natural gas reserves, which contain 84% of Russia’s total natural gas, and double Russia’s share in the fast growing liquefied natural gas market. The Arctic region is said to contain 22% of the world’s undiscovered oil and gas, with the majority of untapped natural gas predicted to be located within Russia’s territory. Currently, Russia’s LNG capacity stands at 10mtpa, but the Yamal LNG project will increase this number by more than twofold.

