China National Petroleum Corporation on Thursday acquired a 20 percent stake in Novatek's major Arctic liquefied natural gas project.
The deal follows a tentative agreement about the purchase, which the companies reached in June.
Paying an undisclosed sum, CNPC is now joining France's Total as a partner of the $20 billion Yamal LNG project.
President Vladimir Putin and his Chinese counterpart Xi Jinping attended the ceremony of signing the purchase deal on the sidelines of the Group of 20 forum in St. Petersburg, a meeting of representatives from the world's leading economies.
"The agreement we signed is an important step ... that will foster a reliable supply of ecologically clean energy resources for the fast-growing Chinese economy," CNPC chairman Zhou Jiping said in a statement.
Novatek chief Leonid Mikhelson said the project gained a "strong partner."
Novatek, which is now left with 60 percent of the venture, could bring on another partner before the end of this year, Mikhelson told reporters. The company is negotiating with several candidates, he added.
Novatek said earlier it would be content with 51 percent of Yamal LNG.
Yamal LNG plans to build a plant to make 16.5 million metric tons of LNG a year and start shipments in 2016. The project also requires construction of an airport and port on the Arctic Ocean.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.