Rosneft alone contributes about 25% of the country’s total tax revenue; commodities price cut taking its toll
Russian state-owned oil giant Rosneft (ticker: RNFTF) was denied aid by the Russian Finance Ministry, according to reports from Russian news source Vedomosti. The $25 billion aid package was approved by the Economic Development Ministry, but then rejected after being sent to the Finance Ministry.
A letter from Deputy Finance Minister Andrei Ivanov, said the company did not provide adequate basis for approving funding, reports Vedomosti. The paper cited four anonymous sources from the Finance Ministry who said the ministry was trying to prevent Rosneft from receiving additional aid, believing that the oil industry was better off than most following the country’s economic crisis.
Rosneft warns of project delays
Rosneft has warned that failure to grant the company assistance could result in delays in future projects, which could make it more difficult for the country to balance its budgets. The oil and gas industry is responsible for about 30% of Russia’s GDP, with Rosneft alone contributing about 25% of the entire country’s tax revenue.
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