Russian gas giant Gazprom is considering raising loans from Chinese banks for general corporate needs, Gazprom Chief Finance Officer and deputy CEO Andrey Kruglov said on Friday.
“We see Chinese commercial banks not only as our key partners to finance facilities necessary for gas supplies to China but also as possible organizers of Gazprom’s funding for corporate needs,” he was quoted by Itar Tass as saying.
Due to the western sanctions, which include a ban on loans of over 90 days, Gazprom is looking for new sources of funding and focuses on Asian financial institutions, Kruglov said.
At the moment, the company is looking into prospects of cooperation with a whole group of banks, including for trade and corporate financing, the issuance of Gazprom’s bonds in offshore yuans in Hong Kong and the establishment of a ruble-yuan settlement system, he said.
The offshore yuan is an offshore version of the Chinese currency introduced by the Hong Kong Monetary Authority and China’s Central Bank to help investors outside mainland China raise capital in the Chinese currency.
Gazprom Neft Selling Foreign Currency Revenue
Russian oil company Gazprom Neft is selling more than 50% of its foreign currency revenue and has no large foreign currency war chest, CEO Alexander Dyukov said Friday.
“We are selling more than 50% of our foreign currency revenue anyway, it is hard for me to speak about other exporters. But I think that the central bank has enough instruments to influence the ruble rate and that this measure is excessive, but the central bank is the one who decides,” Dyukov said.
Earlier this week, the government has sent an order to the largest country’s exporters Gazprom, Rosneft, ALROSA, Zarubezhneft and Kristall diamond cutter to swap part of their revenue for rubles and to have their net foreign currency assets at October 1 levels by March 1.
Dyukov also said Gazprom Neft expects its net profit to remain flat on the year in 2014.
In 2013, the company’s net profit increased 0.9% on the year to $5.4 billion while revenue decreased 1% to $45.5 billion as calculated under International Financial Reporting Standards (IFRS).
Dyukov said the company included the oil price of $60 per barrel into its budget for January next year and it also did not rule out the price might fall to $40-50 per barrel.
The company would like to use ruble settlements in its contracts more widely, he added. “We continue carrying some shipments and supplies for yuans. We also have contracts in rubles.”
