Rosneft increased the cost of its projects to receive financial funds from NWF
Rosneft hopes to receive 301.5 bln roubles from the National Welfare Fund for 4 of its priority projects. The cost of the projects, according to Rosneft, will amount to 1.43 trln roubles atin nominal prices.
Previously Rosneft didn’t want to release the cost of these projects.
In the spring 2015 the Ministry of Economic Development and Ministry of Energy agreed to support these projects by means of issuing 300 bln roubles from NWF.
However, in May 2015 the Vice-Prime Minister, A. Dvorkovich, wanted Rosneft to slightly correct its application for the issue of funds from NWF.
The reduction of the financial support of Rosneft along with the reduction of the supported projects were discussed.
Finally Rosneft didn’t change the amount of financial support but the cost of Rosneft’s projects rose.
Now the company asks to finance 4 projects for 21% with the maximally allowed 40% of the projects’ cost.
A representative of Rosneft said that the company didn’t try to adjust the cost of the projects as it was counted by specialists accredited at the Ministry of Economic Development. One of the chairmen said that the Ministry of Economic Development asked to specify the project design passports, check their value, and it turned out that the value of projects sharply rose.
A source at the Ministry of Energy thinks that some Rosneft’s projects are completed by 70%, so their value should have been decreased.
40% of the project’s value is 26 bln roubles and the real company’s need is 4 bln roubles.
At the annual meeting of shareholders on June 17th 2015 it was said that in Q1 2015 Rosneft paid about $16 bln to settle its financial obligations.
As of the beginning of June 2015 it became clear that the Ministry of Finance didn’t want to approve the project of the report of the Ministry of Economic Development on financing Rosneft’s projects from NWF.
In August 2014 Rosneft’s head, I. Sechin, asked NWF to issue 1.4 bln roubles that was similar to the company’s net debt as of June 2014.
On September 11th 2014 the Government rejected to issue funds but didn’t refuse to support Rosneft.
http://neftegaz.ru/news/view/138680/
Translated by Galiya Musabekova
