Government proposes investing another 4 billion rubles in Novatek’s Utrenny terminal this year
© RIA Novosti. Aleksandr Kondratuk

Government proposes investing another 4 billion rubles in Novatek’s Utrenny terminal this year

The Russian Government has proposed to channel an additional 4 billion rubles to develop Novatek's Utrenny terminal in 2019, according to the explanatory note for the draft amendments to the 2019 federal budget law submitted to the State Duma.

The adjustments to the federal budget are to be made under the state program Development of the Nuclear Power Industry.

"The following amendments are proposed to the state program's expenditure section: additional federal allocations envisaged for <…> the implementation of the measures that are part of the Northern Sea Route federal project, to ensure the transshipment of liquefied natural gas and gas condensate at the Utrenny Terminal in the sea port of Sabetta, including building federal property (underwater hydraulic structures, ice barriers, navigation safety facilities), as well as rebuilding the sea canal, in the total amount of 4 billion rubles," the document says.

The draft amendments also provide for cutting the federal allocations for building Project 22220 civilian-use nuclear icebreakers by 4.4 billion rubles in connection with the postponement of their commissioning. The Baltic Shipyard (a unit of the United Shipbuilding Corporation) is currently building three Project 22220 universal nuclear-powered icebreakers (the Arktika, the Sibir and the Ural), which will be among the largest and most powerful icebreakers in the world. All the icebreakers have already been floated. The LK-60 Arktika nuclear-powered icebreaker was to be assigned to Atomflot in May 2019, but its transfer has been moved to May 2020.

In May, the Kommersant newspaper, citing sources, reported that dredging for Novatek's new LNG terminal would be done at the expense of the nuclear icebreaker construction program. As Head of Rosmorrechflot (Federal Agency for Maritime and River Transport) and Deputy Transport Minister Yury Tsvetkov said at the Arctic Forum earlier, the Rosatom State Corporation would contribute 4 billion rubles for bottom dredging for the Utrenny terminal, noting that the work has to be started this summer.

Earlier in March, President Vladimir Putin instructed the Government to provide the necessary funds for Novatek's new project in the federal budget for 2020-2022, so that dredging for the Utrenny LNG terminal in the port of Sabetta would be done this year.