ERBD plans investment in Sakhalin-2

The European Bank for Reconstruction and Development plans to participate in various oil, gas and other sector projects in Sakhalin region, EBRD Vice President Noreen Doyle said in Yuzhno-Sakhalinsk after signing a memorandum on cooperation with the regional administration.
The Bank will continue efforts to move beyond oil and gas to support projects that are aimed at diversifying the region's economy and resolving its social problems, she said.

Earlier, the EBRD discussed possible investment of at least $ 100 mm in Sakhalin-2. The bank, however, said it was concerned about the project's environmental safety and will not invest in it until Sakhalin Energy, the project operator, provides the necessary information.
On the regional administration's suggestion, EBRD experts have began to develop projects for cooperation in eliminating the consequences of possible oil spills and in utilizing production waste. Sakhalin First Deputy Governor Boris Gorkunov said that the EBRD may provide financing for the fishing industry. It also aims to help increase the efficiency of electricity and thermal energy production and consumption.

It was earlier reported that the EBRD planned to provide a loan equivalent to EUR 30 mm for municipal infrastructure in Sakhalin region. The Bank's board will discuss the loan on May 11, 2004.
The EBRD will work with the regional administration and local business circles to develop small and mid-scale businesses, and provide aid for large banking groups working in Sakhalin region in projects to finance small and mid-scale businesses. The EBRD has since 1999 allocated over 900 loans totalling over $ 3.5 mm to Sakhalin companies, Doyle said.