China may finance Russia's gas pipeline to Europe

Gazprom's Nord Stream 2 pipeline may get Chinese financing if European companies are forced out of the project by the latest round of US sanctions, business daily Vedomosti reports.

Russian officials have already contacted Chinese banks, sources have told the media.

"Nord Stream 2 has a good rate of return and low risks for creditors. Chinese banks may be interested," explains Aleksey Grivach, deputy CEO at Russia's National Energy Security Fund.

The extension will double the existing pipeline which delivers natural gas to Germany under the Baltic Sea and is estimated to cost €9.5 billion.

Initially, Engie, OMV, Royal Dutch Shell, Uniper, and Wintershall were to get a 50 percent stake minus one share in Nord Stream 2. However, red tape at the European Commission made Gazprom and its partners come up with another financing option. Under this plan,...