EU sanctions start to hit Russian oil giant Rosneft

With the EU poised to unleash more sanctions over Ukraine, previous measures mean Rosneft is cutting staff and production as its access to Western financing and technology has been severely curtailed. That makes it more difficult to service $55 billion of debt and get the imported equipment needed to develop new fields and upgrade refineries. Rosneft has had to ask for the equivalent of $40 billion in state help from a Russian sovereign wealth fund. Prime Minister Dmitry Medvedev has said the company could get it, calling it reasonable, as the investment would be repaid from revenues from oil sales. Talking about sanctions generally he said: “The government’s responsibility is to protect Russian businesses facing unfair and unlawful actions by foreign states or foreign companies”. Rosneft, which alongside gas monopoly Gazprom is a top contributor to Russian government coffers, needs to invest heavily to bring new east Siberian fields online. INC News, 09/09/2014 - via Euronews