Fitch Affirms Gazprom Rating at 'BBB-' With Negative Outlook

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Fitch ratings said that the Russian energy giant's ratings reflect the organization's expectations that Gazprom would remain a vital gas supplier to Europe over the medium term.

MOSCOW/LONDON (Sputnik) — Fitch ratings said Monday it had affirmed Russian energy giant Gazprom's Long-term foreign currency Issuer Default Rating (IDR) at 'BBB-' with the negative outlook.

"Gazprom's ratings reflect our expectations that it will remain a vital gas supplier to Europe over the medium term," Fitch said in a statement.

"The IDR and Outlook are capped by that of Russia [BBB-/Negative]," Fitch stressed.

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Gazprom is the largest extractor of natural gas in the world, accounting for 12 percent of the global gas output. It holds some 17 percent of global gas reserves.

US sanctions against a Yuzhno-Kirinskoye offshore field in the Sea of Okhotsk, owned by Russia’s energy giant Gazprom, are unlikely to affect the company’s operations, Fitch Ratings said in a statement Monday.

On August 7, the United States extended the sanctions they imposed against Russia over its alleged involvement in the Ukrainian crisis, blacklisting the Yuzhno-Kirinskoye field.

"We also believe the latest US sanctions against the Yuzhno-Kirinskoye oil and gas field should not materially affect its [Gazprom’s] operations," Fitch said.

US authorities added Gazprom’s oil and gas field in the Sea of Okhotsk to their blacklist of Russian assets, in an alleged bid to prevent violations of industry sector sanctions, according to a Friday entry in the Federal Register. - Sputnik International
US Extends Russian Industry Sector Sanctions to Gazprom Oil and Gas Field
On August 10, head of Gazprom’s finance and economics department Alexander Ivannikov said that the company needed from between two and six months to work out the issue of restrictions against the Yuzhno-Kirinskoye field.

According to Kremlin spokesman Dmitry Peskov, the US sanctions against the field would not seriously affect the performance of Russia's oil and gas industry.

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