Energy Blast – Sept 24, 2008

The Kommersant has featured an interview with former director of the International Energy Agency Claude Mandil, who believes Nabucco can only be implemented with Russia, and not against it, but that the war in Georgia has “somewhat clouded relations between Russia and the EU”. Russian power producer OGK-2 is seeking a $1.6 billion capital increase to fund the purchase of coal deposits, as “other forms of funding dry up amid the credit crisis”, the company’s head stated today. OAO Rosneft, Russia’s largest oil producer, rose as much as 6 percent to 210.90 rubles today, while OAO Lukoil, the biggest non-state oil company, gained 0.5 percent to 1,657.73 rubles on the Micex. The yield on Lukoil’s 7.1 percent bond maturing in 2011 advanced 104 basis points to 11.16 percent today.