The European Bank for Reconstruction and Development said on Sunday it would invest 2 billion rubles ($85 million) in an equity project to enable a Siberian oil firm to cut greenhouse gas emissions, RIA Novosti reports.
"The project will enable the Irkutsk Oil Company to cut greenhouse gas emissions from its East Siberian oilfields by re-injecting associated gas instead of flaring it," the EBRD said in a statement.
Under the deal, the EBRD will acquire an 8.15% stake in the holding company for the privately-owned Irkutsk Oil, the leading oil and gas condensate producer in the Irkutsk Region, Russia's second richest in hydrocarbon reserves, the statement said.
"The project is in line with the government's drive to slash drastically the wasteful and environmentally damaging flaring of gas, which, according to some estimates, burns up to 5% of Russia's gas total output. According to the World Bank, Russia flares more gas than any other nation, having in the last decade overtaken Nigeria," the statement said.