Global Crisis Reaches Russian Oil and Gas Companies

Excerpt from Russian Petroleum Investor by By Svetlana Milyaeva

The global financial crisis has finally hit the real sector of the Russian economy, including hydrocarbons. The largest Russian banks have raised annual interest rates on ruble credits for oil and gas corporations. Second echelon banks have increased interest on loans to 18 percent and rates continue to grow. As a result, almost all participants in the oil and gas sector have already reduced programs of short-term loans, and many of them plan to revise 2009 investment programs.

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