Russia’s state-owned oil giant Rosneft asked the Russian government Friday for a US$42 billion dollar loan as US and EU sanctions squeeze the company’s cash flow.
Rosneft, Russia’s second largest oil company, requested the funds from the National Wealth Fund, the BBC said.
The National Wealth Fund fiances Russia’s state pensions.
The government said it will consider the loan during the next two weeks.
President and Chairman of Rosneft Igor Sechin said that the company needs the money to alleviate the strain caused by the sanctions.
Sechin is a close ally of President Vladimir Putin.
US and EU sanctions have severely restricted Rosneft’s access to capital.
The sanctions bar the company from receiving loans with more than 90 days maturity.
The EU and US have also severely restricted the sale of drilling technology to Russian companies.
In July, the US Commerce Department placed export restrictions on the sale of technology for deepwater, Arctic or shale drilling. The EU quickly did the same.
Rosneft has an outstanding debt of $44.5 billion stemming from its acquisition of BP’s 50 percent stake in TNK-BP for $16.65 billion in cash and 12.84 percent of Rosneft shares in 2013.
BP currently owns a 18.5 percent share of Rosneft.