Fitch eyes China loan not to improve Gazprom’s liquidity greatly

MOSCOW, Mar 10 (PRIME) -- A 2 billion euro loan, provided by Bank of China to Russian gas giant Gazprom for 5 years, is unlikely to improve liquidity of the gas producer significantly and will just offset a part of company’s costs over the next few years, international rating agency Fitch said in a statement on Thursday.

The loan accounts for a mere 12% of a 1.3 trillion ruble funding which will be needed by Gazprom in the next couple of years, Fitch said.

Loan liabilities and financing of operating activities may put the Gazprom’s liquidity under pressure; the company may cut capital expenditures, postpone a range of projects or decrease dividends.

At present, Gazprom maintains a strong liquidity profile, Fitch said. Gazprom and its subsidiaries had about 1.5 trillion rubles worth of own funds and borrowings at disposal as of December 31, 2015.

(72.3775 rubles – U.S. $1)

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