The European Bank for Reconstruction and Development's board of governors has approved a loan to Russia's largest private oil producer OAO Lukoil (LKOH.RS), an EBRD spokesman said Wednesday.
The loan is to be used to modernize the TGK-8 thermal power generator in Krasnodar, southern Russia. Lukoil owns a controlling stake in TGC-8, and became its strategic investor in 2008 as part of the restructuring of Russia's electric power system.
The bank didn't disclose the amount of the loan, which is estimated at EUR240 million on the EBRD's Web page. The spokesman said the final amount will differ from that, as the total cost of the project is now substantially higher than the earlier estimate of EUR333 million.