Government of Russian Federation : Draft law on ratifying the protocol to the agreement between the Russian and Chinese governments on cooperation on the Yamal LNG project submitted to the State Duma

The protocol was signed in Beijing on 17 December 2015.

Draft law on ratifying the Protocol to the Agreement between the Governments of the Russian Federation and the People's Republic of China on Cooperation in the Implementation of the Yamal LNG Project (hereinafter referred to as the Draft, the Protocol and the Agreement, respectively) was submitted to the State Duma by the Ministry of Foreign Affairs and the Energy Ministry.

In accordance with Government Directive No. 2543-r of 11 December 2015, the sides signed the Protocol in Beijing on 17 December 2015. It allows the Chinese government's Silk Road Fund to purchase 9.9 percent of shares of Yamal LNG from NOVATEK, in addition to the shares of Yamal LNG that belong to the China Petrochemical Corporation (Sinopec Group) under the Agreement.

The obligations of the Russian side under the Protocol make it possible to attract additional foreign investment to the Yamal LNG project by international banks.

The Protocol also reaffirmed Russia's commitment to purchase Yamal LNG bonds with the money from the National Wealth Fund.

The purchase and sale contract between NOVATEK and China's Silk Road Fund will include a section on attracting a long-term loan on favourable conditions. Thus, the agreement's implementation will attract investment by China's Silk Road Fund to Russia.

The Draft conforms to the provisions of the Treaty on the Eurasian Economic Union of 29 May 2014 and other Russian Federation international agreements.

In accordance with the Federal Law on the International Treaties of the Russian Federation, the Protocol is subject to ratification because it contains parameters that differ from those envisaged by Russian legislation.

The Government of the Russian Federation reviewed and endorsed the Draft at its meeting on 21 January 2016.