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Gazprom increases funding for 2015 Power of Siberia and South Stream projects

22nd October 2014

Gazprom has issued its financial plans for next year in its Investment Programme, Budget and Cost Optimisation Programme 2014, in which it plans to raise its 2015 spending by around USD 5.35bn to cover the cost of its major transmission projects

Gazprom increases funding for 2015 Power of Siberia and South Stream projects
This comes as economic sanctions imposed following the Ukraine crisis have limited the Russian state-player access to Western financial markets

Gazprom plans to raise its total investments next year to around USD 25bn (RUB 1.026tn) as it tries to tackle its major gas transmission projects to both Europe and China.

This comes as economic sanctions imposed following the Ukraine crisis have limited the Russian state-player access to Western financial markets.

“The 2014 Investment Programme adjustment is mainly driven by the need to increase long-term financial contributions as well as the investments in Gazprom's top-priority strategic projects for natural gas production and transportation,” Gazprom has said in a statement.

The company highlighted its high-profile pipeline projects as the main driver of capital spending.

It is currently in the process of commissioning and constructing the South Stream pipeline project to ship gas under the Black Sea and into Europe, as well as embarking on the ambitious Power OF Siberia transmission network in order to fulfil it’s USD 400bn trade agreement with China.

Gazprom has said that the amount of capital investments will make up USD 19.89bn (RUB 816.57bn), of which USD 19.57bn (RUB 804.86bn) and USD 285.15m (RUB 11.712bn) will be allocated for capital construction and acquisition of non-current assets.

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