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Russia continues Arctic gas project amid tension with Europe

File photo shows the ambitious USD-27-billion Yamal gas megaproject under way in northern Russia. ©AFP

As tensions increase in Moscow’s relations with Europe over the ongoing crisis in Ukraine, Russia seems bent on implementing its Yamal project, which aims to produce liquefied natural gas (LNG) using arctic gas reserves.

According to AFP, Yamal gas megaproject, which is expected to cost USD 27 billion is going on nonstop despite extreme climatic conditions and sanctions imposed on Russia by the United States and European Union over allegations that Moscow has a hand in east Ukrainian crisis.

Yamal site is located about 2,500 kilometers (1,600 miles) northeast of the Russian capital, Moscow, where the joint venture is being carried out by Russia's Novatek, France's Total and China’s CNPC (China National Petroleum Corporation).

The project is meant to become one of the world's biggest LNG projects, whose final product will be shipped to both Asia and Europe.

According to reports, the project is now in full gear at a place where according to Dmitry Fonin, a veteran of industrial projects in the Russian north who is at the helm of construction of Yamal LNG, "There was nothing … [but] tundra" up to two years ago. At present, around 9,000 workers are working round the clock to launch the massive facility by 2017 with the final goal of producing about 16.5 million tonnes of LNG per year.

Russia hopes the location of the plant will make it possible to diversify energy exports by shipping LNG to both European markets and Asia, via the northern route, which is the shortest passage between European Russia and the Pacific Ocean.

Plans for the implementation of Yamal LNG project date back to 10 years ago before Russia faced sanctions imposed by the US and EU, which claim that Moscow is behind the crisis in east Ukraine.

Despite the sanctions, Yamal project has not been affected yet as Total and CNPC still remain onboard with 20-percent stakes each.

Ukraine’s mainly Russian-speaking regions in the east have witnessed deadly clashes between pro-Russians and the Ukrainian army since Kiev launched military operations to silence the pro-Moscow forces in mid-April last year.

The UN human rights office in Geneva said on Friday that at least 6,116 people have been killed and 15,474 wounded since the tumult was triggered last April.

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