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Western business circles not intrested in escalating tension with Russia — view

April 07, 2014, 8:49 UTC+3 ST PETERSBURG
"As for the financial situation, a certain rise in the cost of borrowings may occur," Gazprom Neft CEO believes
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© ITAR-TASS/Marina Lystseva

ST. PETERSBURG, April 07. /ITAR-TASS/. The business circles of western countries are not interested in escalating tension in relations with Russia, Gazprom Neft CEO Alexander Dyukov told journalists.

“Western business circles essentially do not understand all that hysterics and anti-Russian rhetoric. They are undoubtedly not interested in any escalation of tension,” he said referring to his unofficial contacts with partners.

Dyukov's opinion is that sanctions, if applied, are unlikely to seriously affect the production and economic activities of his company. He said that already after a package of sanctions had been made public, Gazprom Neft made a club credit drawdown with participation of an American bank among others.

In order to finance production and economic activities, the CEO went on saying, the company “drew part of resources that we need in 2014 way back in 2013”.

“The average cost of borrowings in our portfolio currently accounts for 3.5% per annum. This is not quite costly. As for possible changes on the financial market, they are theoretically possible. Rating may decline. However, ours is a rating that is high enough. First, there is margin for decline in this respect,” Dyukov said.

“Second, I know Western credit-lending institutions' attitude to us. They treat us with respect in a good sense of the word and, accordingly, see the company's strategy, see the robust financial results and indicators we demonstrate every year. They see our financial stability (the net debt level is 0.6). All this inspires optimism in us. We believe it unlikely that Western banks will give up working with us. Nevertheless, at all events, we have also trodden a path to Asian creditors. This is why we may get financing over there as well. Besides, the internal market is also available and, accordingly, our state has an opportunity to render support. It is understandable that an application to this effect will be forthcoming, in a pinch. Matters are unlikely to go to such lengths. However, we remember 2008 when the state rendered support to many companies,” he went on to say.

“As for the financial situation, a certain rise in the cost of borrowings may occur. There may be 3.8%, not 3.5%. We shall tide it over, for all our projects have a domestic rate of return is over 15%,” the Gazprom Neft CEO summed up.

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