PIC, Russian company seal energy deal

THE Public Investment Corporation (PIC) and Russia’s GazpromBank – a division of global energy company Gazprom – have signed a cooperation agreement that could see the two entities co-invest in energy deals in South Africa and the rest of the continent.

GazpromBank‚ Russia’s third-largest bank‚ said it would look to fund energy deals in Africa‚ including South Africa’s renewable energy sector.

If successful‚ the partnership could intensify competition for the country’s energy deals‚ which have benefited SA’s major banks.

The announcement comes after GazpromBank launched GazpromBank Africa yesterday and opened its first representative office in Africa in Johannesburg. The representative office will be headed by former Industrial Development Corporation chief economist Lumkile Mondi.

Mondi said it was important for GazpromBank to work with the PIC‚ which had insight into the corporate activities on the continent.

“They will be bringing in the deals … we are bringing in gas and oil expertise. The PIC will benefit immensely‚” Mondi said.

He said Africa had discovered huge resources in both oil and gas.

“We have got about five deals that we are looking at in oil and gas in southern Africa‚” Mondi said.

He said that these were in Mozambique‚ Namibia and SA.

PIC chief investment officer Daniel Matjila said his company’s development investment fund had so far committed R7-billion in renewable energy investments. “It will probably reach its capacity of R14billion within the next 24-36 months.”

Gazprombank deputy chairman Oleg Vaksman said there was no relation “whatsoever” between his entity and SA’s nuclear programme. — BDlive