Bashneft and Gazpromneft debate pre-exports

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02 February 2010

Russian oil producers Bashneft and Gazpromneft are deciding between pre-export financings or bond issues as they approach bankers for new loans.

Russian oil producers Bashneft and Gazpromneft are both in the market for jumbo financings.

Banks are lining up to land the mandates but the producers are still debating about whether to tap the bond market or use a pre-export financing.

Market insiders confidently predict that that if both companies do decide to undertake pre-export financings they will be looking to secure at least $1 billion each with a push towards five-year tenors.

Russian oil producer Tatneft is already back in the market as it negotiates a $2 billion refinancing to finance construction of its Taneco refinery project in the Republic...

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Poll

Will Russia’s recent ban on grain exports result in a significant rise in private risk insurance claims from grain traders unable to fulfil their contracts?

Yes – there will be more claims. The government’s actions allow traders, with PRI cover, to make claims through contract frustration.

No - the majority of Russia’s wheat production, some 70%-80%, is used for domestic consumption so the contracts represent only a small portion of the total wheat market, limiting the amount of potential claims.

23%

No - traders had a week’s notice before the ban allowing them to secure alternative supplies to fulfil contracts stated as optional origin.

23%

Maybe - but claims are likely to be limited to traders dealing in soft wheat whose contracts demand they source wheat only from Russia.

46%