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01 May 2001
Having closed the $2bn Blue Stream, Gazprom is already looking to finance new gas and oil projects. But despite unlimited limited recourse potential, Gazprom could soon face commercial challenges it has never experienced before.
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Gazprom hopes to step up its project finance lending programme ?
but management fears that European gas liberalisation could
undermine the long-term export contracts that are essential as
collateral.
According to Sergei Dubinin, deputy chairman of Gazprom, the
company intends to raise investment capital for ?a number of
principal projects? in the form of off-balance-sheet project
finance. (see interview).
Dubinin says that having succesfully closed the $2 billion loan
for the Gazprom-ENI Blue Stream pipeline ? by far the largest deal
for a Russian borrower since the 1998 financial crisis ? the
company's priority is to secure financing for two Arctic offshore
upstream projects: Shtokman (gas) and Prirazlomnoye (oil).
But Dubinin also warns that European gas market liberalisation
could make collateralising such finance ?impossible?, and calls on
European political and financial institutions to help ensure the
projects' future. He indicates that Gazprom ? which is opposed to
the full market liberalisation envisaged by the European Energy
Charter...
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