Russian onshore market risk first for energy project

Author: | Published: 13 Jul 2011
A Russian project financing has closed with international banks accepting full onshore market risk. It could represent a turning point for project finance in the country.

In a 50/50 joint venture, Russian petrochemical company Sibur and Belgium’s SolVin signed a 12.5 year, €750 million (£660 million) project financing for the RusVinyl polyvinyl chloride plant on June 17.

In a first for the Russian energy sector, the financing included a Russian borrower, Russian law project documents, a domestic offtake strategy and ruble-denominated funding. The...