State-Led Consortium Invests in Timchenko's LPG Terminal in Russia

A consortium of Russian institutional investors and foreign partners has unveiled its intention to invest over US$700mln to ‘gain complete control’ of a LPG and light oil products transhipment terminal, suggesting that Russia could find its way out of Western sanctions. 

‘As part of the transaction, the consortium will gain complete control over the terminal, which is not only the largest in the CIS but also the only LPG transhipment terminal in the Russian North-West. It is also one of the most modern port infrastructure facilities on the Baltic Sea,’ reads a note released by Russian Direct Investment Fund, which is one of the investors.

Sibur, which currently owns the terminal, is mainly owned by Gennady Timchenko and Novatek’s shareholder Leonid Mikhelson. The US placed sanctions on Timchenko in March.

The communiqué does not shed light on the amount invested by the different investors, simply mentioning Gazprombank as one of them. Gazprom is the third Russian bank.

"Investment in Russian infrastructure is a core area of Gazprombank's activity. The LPG and light oil products terminal in Ust-Luga is an attractive investment opportunity due to its fundamental competitive advantages and significant potential for value appreciation in future," Alexey Matveev, Deputy Chairman of the Board of Gazprombank, commented on Thursday.