RRu­usss­si­iaa mmuul­l­llss $$4400bbnn RRoossnneefftt aai­idd

Financial Mirror (Cyprus) - - FRONT PAGE -

Ros­neft could be in line for a $40 bil­lion-plus boost from the Rus­sian state as the oil be­he­moth looks to fight off the ef­fect of in­ter­na­tional sanc­tions against it and the coun­try, the oil and gas pub­li­ca­tion Up­stream re­ported. The Rus­sian gov­ern­ment is con­sid­er­ing “types of support” for the Moscow-based gi­ant fol­low­ing a re­quest last month from company pres­i­dent Igor Sechin for 1.5 trln rubles ($40.45 mln) in a let­ter sent to the Min­istry of Eco­nomic De­vel­op­ment. On Mon­day lo­cal news­pa­per Ve­do­mosti quoted Prime Min­is­ter Dmitry Medvedev as say­ing that help could be on the way for Ros­neft.

“This fig­ure (of 1.5 trln rubles) only looks im­pos­ing, but ev­ery­thing doesn’t have to be done in one year,” Medvedev told Ve­do­mosti.

“I re­cently held a meet­ing on Ros­neft’s in­vest­ment pro­gramme. The company needs to main­tain its pro­duc­tion lev­els, be­cause Ros­neft is a ma­jor source of tax rev­enue,” he said.

“As such, we should help it main­tain its level of in­vest­ment. We are now con­sid­er­ing spe­cific vari­ables and types of support. “I have no doubts about the company’s per­for­mance in the medium to long term. The in­vest­ment will cer­tainly pay off,” Medvedev con­tin­ued. Sechin in mid-Au­gust was re­ported to have laid out five sug­ges­tions for support from the fed­eral gov­ern­ment, with help from the Na­tional Wel­fare Fund one pos­si­bil­ity. Ve­do­mosti re­ported at that time that Sechin sug­gested the fund spend 1.5 trln rubles on Ros­neft bonds.

Net debt at the Moscow-based player stood at 1.5 trln rubles at the end of June.

Ros­neft and Sechin him­self have found them­selves on the end of sanc­tions im­posed by Western gov­ern­ments over the an­nex­a­tion of Crimea from Ukraine ear­lier this year.

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