Government saves petroleum companies from bankruptcy

MNB

The Russian government has taken measures to save the main state-controlled petroleum companies from their creditors.  

The federal officials have included the state-owned oil company Rosneft, the debts of which amount to $36 billion, in the list of “strategic companies” thus complicating bankruptcy procedures. Gas giant Gazprom, which has a debt of 962.7 billion rubel, ($37.8 billion) is also listed as “strategic company” and protected against bankruptcy threats. According to newspaper Vedomosti, the debts of Rosneft have skyrocketed since 2004 when it spent $9.4 billion on the acquisition of former Yukos asset Yuganskneftegaz.

The company subsequently met major problems with handling creditor demands. Vedmosti reports that as much as $13.8 billion of the Rosneft debt was to have been returned by the end of 2006, but that this by mid-May had not yet happened. According to Deputy President of Rosneft, Peter O'Brian, the handling of the debts is all under control.

The list of “strategic companies” was elaborated in 2004. Rosneft, which for some time has lobbied its own inclusion in the list, was included 15 May this year, Vedomosti reports. More than 1000 companies are on the exclusive list, about all of them state-owned defense enterprises and strategic research institutions. Also Gazprom is listed. (barentsobserver.com)

 

 

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

Operative corps for economic recovery decides on further mea... Government

Operative corps for economic recovery decides on further mea...

Healthcare Roadshow Highlights Innovation, Screening Awarene... Interview

Healthcare Roadshow Highlights Innovation, Screening Awarene...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.