Rosneft asks Moscow for $42bn as western sanctions bite.

FT: “Rosneft has asked the Russian government for as much as Rb1.5tn ($42bn) in support, in a clear sign of the growing cost of western sanctions against Moscow.”
“The Russian government will consider a request from Igor Sechin, the powerful head of Rosneft, to offset the impact of western restrictions against the state-owned company within the next two weeks, Arkady Dvorkovich, deputy prime minister, told journalists on Thursday.
Mr Sechin’s appeal included a proposal for the government to spend Rb1.5tn from the national welfare fund, which supports the country’s pension system, to buy Rosneft debt, according to a person familiar with the matter. The US imposed sanctions on Rosneft last month, restricting its ability to raise long-term financing.
….The west has in the past month ratcheted up the pressure on Russia’s energy industry, which delivers more than half of all government revenues. The US has imposed sanctions on Rosneft and Novatek, the second-largest gas producer, and together with the EU has restricted sales of technology to the Russian oil industry.
….The oil group is highly indebted after spending $55bn buying TNK-BP last year, with net debt of just under Rb1.5tn at the end of June, of which Rb1.1tn must be repaid by the end of next year.
Analysts believe that is comfortable given the tens billions of dollars of advance payments it is set to receive from China’s CNPC under a long-term supply deal. But the company’s ambitious raft of projects – including the development of energy resources in the Arctic – may be in jeopardy without access to western financing and technology.”