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. Last Updated: 07/27/2016

BASF to Loan $675 Million To Gazprom

BASF Chairman Jurgen Strube said Monday that the BASF group would extend Russia's Gazprom natural gas monopoly a 1 billion Deutsche mark ($675 million) credit.


He told a news conference after a foreign investment conference in Moscow that contracts for the loan would be signed Monday.


Asked what the loan would be used for, Strube said: "There are additional plans for building and opening up natural gas reserves in the Yamal Peninsula [in northern Russia]. In order to bring this gas to Western Europe, additional substantial sums will be required."


Interfax said earlier Monday that Cali Bank, a subsidiary of Wintershall AG0 and BASF, would disburse the loan.


The $10 billion Yamal gas pipeline from Russia to Germany is due to start delivering 30 billion cubic meters of gas a year from the end of next year.