Date
19 October 2017
Customers queue for fuel at a Rosneft gas station in Moscow. The oil company is seeking government aid. Photo: Bloomberg
Customers queue for fuel at a Rosneft gas station in Moscow. The oil company is seeking government aid. Photo: Bloomberg

Rosneft asks Moscow for US$42 bln lifeline

Russia’s large oil company has asked the government for as much as 1.5 trillion rubles (US$42 billion) in support as western sanctions against Moscow take their toll. 

The Russian government will consider within the next two weeks a request from Rosneft chief executive Igor Sechin to offset the impact of western restrictions against the state-owned company, Arkady Dvorkovich, deputy prime minister, told journalists on Thursday.

Sechin’s appeal included a proposal for the government to spend 1.5 trillion from the national welfare fund, which supports the country’s pension system, to buy Rosneft debt, the Financial Times reported Friday.

The US imposed sanctions on Rosneft last month, restricting its ability to raise long-term financing.

The request by Rosneft comes amid increasing signs of the impact the toughest east-west sanctions since the end of the Cold War are having on Russia.

On Thursday, the Kremlin said that support to the agricultural industry in the wake of an import ban on western products would require 40 billion to 50 billion rubles a year.

Alexei Kudrin, a former finance minister and one of President Vladimir Putin’s most-trusted economic advisers, wrote on Twitter that that the sanctions would cost Russia “at least” US$200 billion over the next three years.

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RA/JL

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