Russia’s Rosneft deficit widens-the State comforts

Russian Prime Minister Dmitry Medvedev has announced that they are ready to give Rosneft-the state-owned energy supplier 1.5 trillion roubles, that accounts to $40.6 billion.   Igor Sechin, Rosneft’s head had previously asked for financial help from the National Wealth Fund. The sanctions levied by Moscow over Ukraine have also not been of much help, pushing Rosneft down the tunnel.   Russian Prime Minister seems thoughtful about this decision given that there are many economic reasons attached to the survival of Rosneft. Till date, the company has been supplying 40% of Russian energy and is a significant contributor of tax revenue.   Nevertheless, Medvedev has stated that the whole amount will not be given at one go after a meeting held on the investment program.   Rosneft last acquisition of TNK-BP, the Anglo-Russian oil firm, has cost $55 billion and it is still struggling to repay the borrowed funds.   According to Medvedev, this loan to Rosneft is a winning strategy for the Russian economy as it one of the biggest taxpayers in the country. Source: Reuters  
Priscilla Camryn By: Priscilla Camryn