Russia’s President Vladimir Putin expressed his confidence as to the viability of the Sabetta port on the Yamal Peninsula, whose infrastructure is currently being constructed.

The port project is a public-private partnership between the Russian government and the Yamal LNG venture. Novatek and Total, a French energy major, are owners of Yamal LNG.

Mr. Putin supported the project’s construction and called for immediately stopping any threats of freezing the work of building contractors at the site. The President emphasized the importance of creating a better transportation infrastructure. President Putin also warned against being too cautious in daring to undertake large projects. The Russian head of state gave a word of encouragement and support to the individual workers at the construction site.

Mr. Putin said that big projects are good for the country, especially if they involve infrastructural development. In the Yamal Peninsula venture, the government stepped in and made a significant investment commitment to the Sabetta port. Government investments were aligned with the interests of private stakeholders. In the case of the Sabetta port, private companies agreed to invest more funds than the governmental entities, an arrangement suggesting a high level of confidence on the part of the private investors.

The location of the Sabetta port provides easy access to waterway transportation to and from North America, Europe, and Asia. The future port is also conveniently positioned to take advantage of the North Sea Route. Logistics experts noted that the port will lighten the load of the Transsiberian Railroad and the BAM.

Yamal LNG, Rosmorrechflot, and Rosmorport are the major stakeholders in the Sabetta project. Investors are bringing funds to invest in berths for LNG, oil, and cargo shipments. Repair and warehousing facilities, as well as administrative and engineering blocks also must be constructed.

A total of RUR47.2 billion will be invested in the project by the government alone. In addition, Yamal LNG will invest RUR25.9 billion in extra-budgetary funds. Since the construction started, it was determined that certain other facilities needed to be built, requiring the investment of extra RUR11 billion.

The cargo turnover at the new port is expected to reach 30.7 million tons every year starting in 2020. The first shipment of LNG is scheduled to leave from Sabetta in 2017.