Rosneft seeking Putin loan

KREMLIN-backed Rosneft has gone to President Putin to seek a £25bn loan to ease the pain of US and EU sanctions.

The state-controlled energy giant, which is nearly 20pc owned by FTSe100 oil firm BP, is barred from receiving any credit with a maturity of more than 90 days from US or european banks.

But it has some £27bn of outstanding debt after buying BP out of its TNK-BP joint venture, a deal that resulted in the British firm taking a stake in the business.

about £7bn of debt is due for repayment by the end of the year.

Rosneft suggested that the kremlin should take the money from the National Wealth Fund, a pot earmarked to fund Russian state pensions.

The money would be used to buy up Rosneft bonds and the kremlin will consider the request over the next fortnight, with Rosneft’s hopes resting on the fact that boss Igor Sechin is a close ally of Putin and effectively Russia’s energy kingpin.

But reports in Russia said the Prime Minister, Dmitry Medvedev, is unlikely to support the proposal.

The plea for help is among the first signs that international sanctions on Russian business in the wake of the Ukraine crisis are beginning to bite.

BP has said it does not expect debt sanctions on Rosneft to affect dividend payments, which were worth £271m to the British firm in 2013 and £407m this year. But sanctions on exporting technology to Russia’s oil industry could put the brakes on projects such as arctic offshore drilling and exploration for shale oil and gas.