Business circles of the West are not intrested in an escalation of tension in relations with Russia--Gazprom Neft chief

ST PETERSBURG, April 7 (Itar-Tass) - The business circles of the West are not interested in an escalation of tension in relations with Russia, Company chief Alexander Dyukov has said at a meeting with journalists. "Western business circles, in principle, do not understand all that hysterics, and anti-Russian rhetoric. They undoubtedly are not interested in some escalation of tension," he said when relating his unofficial contacts with partners. Dyukov's opinion is that sanctions, if applied, are unlikely to affect seriously the production-and-economic activitirs of the Company. He said that already after a package of sanctions had bern made public, the Gazprom Neft effected a club credit drawdown, in organizing which an American bank participated as well. In order to finance production-and-economic activities, the Company chief went on to say, the Company "drew part of resources that we need in 2014 way back in 2013". "The average cost of borrowings in our portfolio currently accounts for 3.5 percent at annum. This is not quite costly. As for possible changes on the financial market, they are, theoretically, possible. Rating may decline. However, ours is a rating that is high enough. First, there is margin for decline in this respect," Dyukov said. "Second, I know the Western credit-lending institutions' attitude to us. They treat us with respect in a good sense of the word and, accordingly, see the Company's strategy, see what robust financial results and indicators, as they put it, we demonstrate every year. They see our financial stability (the net debt level is 0.6). All this inspires optimism in us. We believe that it is unlikely that Western banks will give up working with us. But, at all events, we have also trodden a path to Asian creditors. This is why we may get financing over there as well. Besides, An internal market is also available and, accordingly, our state has an opportunity to render support. It is undestandable that an application to this effect will be forthcoming, in a pinch. Matters are unlikely to go to such lengths. However, we remember 2008 when the State rendered support to many companies," he went on to say. "From the viewpoint of financial situation, a certain rise in the cost of borrowings may occur. There may 3.8 percent, not 3.5. We shal tide it over, for all our projects have a domestic rate of return is over 15 percent,'' the Gazprom Neft chief summarized. Learn more on itar-tass.com