Sechin spoke about the impact of sanctions on Rosneft

Igor Sechin

Photo: Sergey Guneev / RIA Novosti

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The sanctions have had a significant impact on the financial performance of Rosneft, in particular its capitalization, but despite this the company has adapted to the restrictions, said the head of the state oil company Igor Sechin

The sanctions imposed in relation to the activities of “Rosneft” some European countries and the United States, had a significant impact on the company’s capitalization. This was told by its head Igor Sechin at a press conference in Berlin, held on the occasion of the opening of the office of “Rosneft” Rosneft Deutschland in Germany, reports “RIA Novosti”.

He also noted that at present it is useless to discuss the prospects of lifting the sanctions, “Rosneft” had to adapt to them and running without breaking the law, although having legitimate opportunities to circumvent sanctions.

The CEO also noted that the company continues to believe sanctions are illegal, and a negative court decisions will not stop Rosneft from filing new claims. Sechin also called the quality level, which is the company’s debt burden at present, “especially for a company under sanctions”.

The fundamental value of “Rosneft” is about $100 billion, and in three or four years, in the case of the lifting of sanctions, this figure would rise to $130-150 billion According to data from the Moscow exchange at 17:32 GMT on Thursday, may 18, the total capitalization of Rosneft is 3,233 trillion rubles.

Speaking about the company’s activities in the context of the economic situation in Russia, Sechin stressed that Rosneft feels confident despite the volatility of the exchange rate. While improvement of “Rosneft” was played by the devaluation of the ruble. “Part of ruble costs we utilize to ensure this effectiveness. But even at the rate of 30 rubles to the dollar, our cost would be of the order of 4.1 dollars per barrel,” — said Sechin.

Resources of the Russian oil company, said Sechin, allow you to work without additional investments in exploration, 22 years old. “Even in the face of volatility in the markets, we are quite confident we will feel. I will once again draw your attention to the volume of the resource base. If necessary, we will not conduct a major capital investment, no exploration with this resource base without reducing the production can work for 22 years “, — he added.

In early may, Rosneft reported under IFRS for the first quarter of 2017. According to published reports, the company’s net profit which belongs to shareholders, increased by 8.3% compared to the same period last year and amounted to 13 billion rubles, the Company explained that the increase in profit was recorded “with a significant negative impact of exchange gains from the strengthening of the ruble”.

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