Accessibility links

Breaking News

Russia: Financing For Oil Project Approved

Washington, 12 March 1997 (RFE/RL) - The U.S. Overseas Private Investment Corporation (OPIC) has agreed to provide up to $116 million in financing for an oil and gas project in the Russian far east.

The independent American government agency approved the loans today to a joint venture owned 50 percent by two U.S. companies. It will develop an offshore oil field east of Sakhalin Island. The Russian government, which owns the other half of the venture, has issued an exclusive license to Sakhalin Energy to develop the field under one of the first production sharing contracts. The oil will be sold in Pacific rim markets.

A protocal setting up the project was signed at the February meeting of the Gore-Chernomyrdin, U.S.-Russia Commission in Washington.