posted at 02:50
Author Name: Tomas Hirst
Rosneft Profit Hurt By Ruble
Getty Images/ EpsilonRosneft CEO Igor SechinRosneft, Russia's biggest oil producer, reported a net profit of just 1 billion rubles in the third quarter, down from 172 billion rubles in the previous quarter. Its net debt position reached a staggering 1.77 trillion rubles. As testament to its recent struggles Rosneft had earlier seen a request for 2 trillion rubles from the state National Wealth Fund to help it weather current market turmoil turned down. Last week Russia's Finance Minister Anton Siluanov said the scale of the request was impossible to meet without putting huge strain on the country's reserves. The overall volume of the Fund is a little more than 3 trillion rubles and there is not enough unused, inactive capital to meet the request. Undoubtedly, the offer will differ significantly from the request. Rosneft's woes show just how damaging sharp falls in the ruble can be for the Russia's vital commodities sector. What they decide could mean the difference between the country falling into a recession or avoiding an even worse slump.

Posts Archive