LUKoil Chief Says Sanctions Affecting Russian Energy Companies

LUKoil chief Vagit Alekperov says Russian companies have "lost [their credit] ratings" and are having difficulties gaining access to financial markets.

LUKoil President Vagit Alekperov has conceded Western sanctions on Russia over Moscow's actions in Ukraine are negatively impacting Russian energy companies.

In a June 26 interview with the "Vedomosti" business daily, Alekperov said Western sanctions were having an effect "on all [Russian] companies," specifically naming LUKoil, Gazprom, and Rosneft.

Alekperov said the companies had "lost [their credit] ratings" and were having difficulties in gaining access to financial markets.

He said banks through which LUKoil works have recommended postponing plans for posting shares on world markets until autumn because "maybe then the rating of the company will change."

But Alekperov said so far Western sanctions were not putting any "pressure" on LUKoil's work in Europe or the United States.

Alekperov's comments are in contrast to those of other heads of large Russian energy firms, such as Gazprom or nuclear power company Rosatom, who have downplayed the significance of Western sanctions.

Based on reporting by "Vedomosti"