According to the Financial Times, Russian oil and gas players like Rosneft (OTCMKTS: OJSCY) and Novatek OAO (OTCMKTS: NOVKY) should not have any trouble using their cash flows to repay and/or refinance loans. What could prove to be a real headache are the EU and US restrictions on the export of technologies used in Arctic, deepwater or shale oil exploration because production from the ageing workhorses of the country’s oil industry – the vast conventional oilfields of western Siberia – is dropping off sharply.
While Russia does not need help producing conventional oil (something its been doing for more than 100 years), Arctic, deepwater or shale oil exploration requires access to western technology, capital and expertise. With oil sales accounting for 44% of Russian budget revenues, the future stakes are high.
To read the whole article, US sanctions not mere ‘trifles’ for Russia’s oil industry, go to the website of the Financial Times.
- What Russia Sanctions? Russia’s Rosneft and BP Sign Long-Term Oil Deal (MT)
- Graph: The Structure of Russia’s Foreign Debt (Research Affiliates)
- Russian Stocks Are Trading Cheaper Than Half of Their Book Net Asset Value (MT)
- How Russia Avoids Oil Sanctions: Transfer-At-Sea To “Destination Unknown” (Mish Talk)
- Private Equity Group Blackstone to pull out of Russia (FT)
- A New Conversion Option for (large) Holders of Russian ADRs and GDRs (Undervalued Shares)
- Coutts CIO: Russian Stocks Now Appear Attractive (FE Trustnet)
- FATCA Fallout: Russia’s #2 Bank VTB to Stop Servicing Russia-Based US Clients (MT)
- Gazprombank GPB Hires Former Senators Lott and Breaux to Fight Russia Sanctions (CPI)
- Japan’s Exports of Sanctions-exempt Used Vehicles to Russia Surge (Kyodo News)
- Russian Stocks and the Ruble to Remain Under Pressure (Capital Economics)
- Russia Pivoted East to Asia 800 Years Before Obama (MT)
- The Crimea: Already The Next Hot Real Estate Market? (MT)
- Russia’s Mechel to Dump US and Other Assets to Focus on Asia (MT)
- Who Are Russia’s Middle Class? Some Facts and Figures (MT)