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Russia's Rosneft might postpone refinery modernisation due to high rate of interest, taxes

Rosneft, Russia's. biggest oil producer, stated on Friday it might delay updating. its refineries due to high rate of interest and taxes, as its. ninemonth profit fell 13.9% year on year to 926 billion roubles. ($ 8.7 billion).

Industry sources told Reuters this month that a minimum of three. Russian refineries, consisting of Rosneft-owned Tuapse plant, had to. stop processing or cut runs due to monetary losses amid export. curbs, increasing unrefined costs and high borrowing costs.

Rosneft's head Igor Sechin, a longstanding ally of President. Vladimir Putin, has actually long criticised the central bank for its. tight financial policy.

In order to safeguard the shareholders' interests and avoid. losses, Rosneft has been thinking about the need to suspend. refinery modernization jobs. At the same time, fulfilling the. domestic demand for quality petroleum products remains a. concern, the business said.

The bank hiked its crucial interest rate by 200 basis points. last month to 21%, the highest level considering that the early years of. Putin's guideline in the 2000s, when Russia was recovering from the. turmoil that followed the Soviet Union's collapse.

Rosneft likewise stated that a revenue tax increase to 25% beginning. in 2025 had an unfavorable effect on company results.

The company stated its oil and gas condensate production from. January to September reached 138.3 million metric heaps in overall,. or 3.753 million barrels daily on average.

Rosneft did not supply production data from a year back. for comparison, but stated output was pushed by an OPEC+. arrangement to curb production.

Rosneft stated it had actually restored its share buyback program in the middle of. high stock-market volatility.

(source: Reuters)