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Russia’s Energy Ministry on Wednesday approved requests from oil major Rosneft and gas producer Novatek for assistance from the National Welfare Fund. According to Energy Minister Alexander Novak, the requests were sent to the Economic Development Ministry for approval.
Russia’s oil giant Rosneft and the country’s largest independent gas producer Novatek earlier requested assistance from the National Welfare Fund.
Rosneft CEO Igor Sechin told TASS the oil company had requested the government to provide funds on a repayable basis. Russian Finance Minister Anton Siluanov said Rosneft and Novatek will be able to receive $1.9-3.6 billion from the National Welfare Fund already this year.
Lukoil Vice-President Leonid Fedun said on Wednesday the country’s largest privately-owned oil company might also file a request for financial aid.
The sectoral sanctions imposed by the United States and the European Union against Russia bar Russian state-owned energy companies and banks from raising long-term financing on Western markets. The same sanctions apply to Russian private firms whose owners were blacklisted by the US and the EU.
The West announced new sectoral sanctions against Russia in late July over Moscow’s position on Ukrainian events, in particular, what the West claimed was Moscow’s alleged involvement in Ukrainian crisis.