Insight

The challenges of financing Russia's upstream

Get this report

$1,350

You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- Available as part of a subscription
- FAQ's about online orders

05 September 2016

The challenges of financing Russia's upstream

Report summary

 As of Q1 2016, Russian upstream players have accumulated around US$140 billion of long-term debt. In the last two years, EU/US sanctions have prohibited access to Western long-term debt markets to certain operators. This pushed Russian upstream companies to find alternative ways of financing. Relying on domestic and Asian banks, oil supply prepayments, and REPO loans, operators have diversified their sources of funding and kept increasing liquids production. However, not having access to cheap Western capital and facing higher premiums, Russian companies face a difficult choice between increasing their interest burden, selling assets, or delaying some investment programmes which could make sustaining the current levels of output challenging in the long term. 

Table of contents

  • Executive summary
  • Financial sanctions
    • Different strategy for each player
    • Prepayments and asset sales help Rosneft
  • Moving towards Chinese and domestic financing
  • Higher interest burden to negatively impact profitability

Tables and charts

This report includes 8 images and tables including:

  • Who is targeted?
  • Spread - Russian government 10-year bonds vs. 10-year US Treasuries
  • The challenges of financing Russia's upstream: Image 4
  • The challenges of financing Russia's upstream: Image 5
  • Gearing evolution since 2013
  • Upstream cash flow forecast until 2020 (nominal terms)
  • Long-term debt outstanding per company (Yamal LNG not included)
  • Long-term debt outstanding per asset class (Yamal LNG not included)

What's included

This report contains:

  • Document

    Debt Russia 2016.xls

    XLS 429.00 KB

  • Document

    The challenges of financing Russia's upstream

    PDF 677.93 KB

  • Document

    The challenges of financing Russia's upstream

    ZIP 775.29 KB

Other reports you may be interested in

Browse reports by Industry Sector