Gazprom estimates required investments at $5-6bn

The volume of necessary investments for Russia's gas giant Gazprom is estimated at $5-6bn a year, head of Gazprom's corporate financing department Andrey Kruglov reported at the forum "The Banking Sector and the Market of Fixed Income in Russia" today. He noted that external financing was necessary to meet the company's investment demands. The official also stressed that Gazprom had no unpaid and uncovered debts as of now.

Gazprom is planning an issue of bonds worth 5bn rubles (about $158m) for 1,080 days at the beginning of November, 2002. The rate of coupon payments will be 7.5 percent. Kruglov recalled that the company had issued Eurobonds worth $500m in April 2002. The Eurobonds will mature in five years. The bonds will yield 9.25 percent.

Among Gazprom's priority investment projects are the construction of the Blue Stream backbone export pipeline to Turkey, which is scheduled to be completed in December 2002. In 2003, Gazprom is going to complete the Yamal-Europe project and in 2005 it will put into operation the Zapolyarnoye deposit. The official stressed that Gazprom's investment demands would stay unchanged over the next several years.

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