Kremlin throws cash lifeline to players

Anthea Pitt

 15 October 2008 07:48 GMT

The Kremlin is set to channel $50 billion from its foreign exchange reserves toward helping companies - including a number of Russia's upstream giants - refinance foreign debts, as the global financial crisis makes it almost impossible to raise new loans abroad.



Russian companies borrowed extensively during Russia's 10-year economic boom to expand and make acquisitions and now have to repay or refinance $120 billion before the end of next year.

Prime Minister Vladimir Putin said on Monday only companies working in key sectors of the real economy will have access to refinancing aid for loans taken out to fund projects of strategic importance or to buy assets inside Russia.

The money will flow via state bank VEB, which said it had already received more than 35 applications exceeding $50 billion.

Last week, Lukoil…

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