Russia's Gazprom Neft says high interest rate a worry for oil servicing firms
MOSCOW, Dec 16 (Reuters) -Alexander Dyukov, the head of Russian oil producer Gazprom Neft SIBN.MM, said on Monday that high interest rates could negatively impact firms providing support services to the oil industry, raising "serious concerns".
The Russian central bank is expected to hike its key rate by another 200 basis points to 23% at its last rate-setting meeting of 2024 this week, according to a Reuters poll, as high inflation has been exacerbated by a weaker rouble.
Speaking to reporters, Dyukov said his company was strong enough to weather high borrowing costs and had plans to raise investments next year.
"As for the partner companies, including oil services, many of them do not have such a safety margin. And this already raises serious concerns," Dyukov said. "We expect that the rate will decrease in the foreseeable future."
High borrowing costs have prompted some Russian companies to delay or shelve development plans.
Rosneft ROSN.MM, Russia's largest oil producer, said last month it may delay modernizing its refineries due to high interest rates and taxes, as its nine-month profit fell 13.9% year-on-year to 926 billion roubles ($8.92 billion).
Rosneft's head Igor Sechin, a longstanding ally of President Vladimir Putin, has long criticised the central bank for its tight monetary policy.
($1 = 103.8455 roubles)
Reporting by Olesya Astakhova; Writing by Vladimir Soldatkin; Editing by Jan Harvey
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