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VTB reveals price tag for tanker fleet expansion

It is reported that the role of banks will continue growing amid an "absence of external funding and limited cash flows of companies"

BAKU, October 27. /TASS/. Russia will need at least one trillion rubles ($16.3 bln) in the coming years to expand its tanker fleet, chief executive of VTB Bank Andrey Kostin said on the sidelines of the 15th Verona Eurasian Economic Forum in Baku.

Russia’s Deputy Prime Minister Alexander Novak stated earlier the country’s intention to stimulate the development of its own tanker fleet to carry hydrocarbons.

"One more point <…> is the buildup of capabilities of the domestic tanker fleet and capabilities of national insurers and reinsurers. The money is huge. At least one trillion rubles will be required for the tanker fleet’s expansion alone in the upcoming years, according to our estimates," Kostin said.

The role of banks will continue growing amid an "absence of external funding and limited cash flows of companies," the banker said. VTB sees a significant upside in funding new investment projects with bank partners in the oil and gas sector, Kostin noted. "Transactions of this kind will amount to about 1.3 trillion rubles ($21.2 bln) in the midterm," he added.

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