Insurance fund to invest in Russian LNG project

More than 40 Chinese insurance companies and asset managers have jointly started an investment firm, raising CNY40 billion yuan (USD6 billion) for a first fund to finance energy and infrastructure projects overseas, China's insurance regulator said.

The new firm, China Insurance Investment Ltd, will boost China's energy security by directing part of its first fund to finance Russia's USD27 billion Yamal liquefied natural gas (LNG) project, the China Insurance Regulatory Commission (CIRC) said in an online statement recently, without providing any details.

Yamal LNG, due to start production of liquefied natural gas in 2017, should consist of three lines with a capacity of 5.5 million tonnes a year each.

The project has been struggling to raise funds because of international sanctions on Russia over its involvement in the conflict in eastern Ukraine.

China's Silk Road Fund has already provided EUR700 million to Yamal LNG and obtained a 9.9 percent stake in the project. Chinese lenders are also set to provide USD12 billion in credit.