MOSCOW Aug 14 Igor Sechin, the head of Russian
oil giant Rosneft, has asked the government to provide
Rosneft with 1.5 trillion roubles ($41.6 billion) to help the
company weather western sanctions, the Vedomosti newspaper
reported on Thursday.
Under the plan, the state would spend money from its
National Wealth Fund to buy Rosneft bonds, the paper reported,
citing government sources and a letter from Prime Minister
Dmitry Medvedev asking officials to analyse the idea.
Vedomosti said that Sechin had called for the aid as a
response to western sanctions. The United States has banned
credits and loans to Rosneft with a maturity longer than 90
days, and European banks and investors have de facto joined the
sanctions, the paper reported.
Rosneft has net debt of $44.5 billion, mainly arising from
its $54 billion acquisition of oil company TNK-BP in 2013, the
There are insufficient funds in the National Wealth Fund to
finance the injection, Vedomosti said, as much of the 3.1
trillion ($86 billion) fund has already been assigned to other
An anonymous official cited by the paper called Sechin's
plan "horrible", and another government source told the paper
that Medvedev was unlikely to back it.
Rosneft declined to comment to Reuters.
(Reporting By Jason Bush)