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Trafigura CFO Says Company’s Risk Is Limited in Vostok Oil Investment

  • Loan used to buy stake in project is non-recourse, says CFO
  • Debt in deal for Russian project came from Russian banks

Trafigura Group’s risk is limited in its investment in Vostok Oil, its finance chief said in an interview that cast new light on the trader’s bet on Russia’s flagship Arctic oil project.

Trafigura bought a 10% stake in Vostok Oil, a vast project controlled by Rosneft PJSC, in December last year, but details of the deal have only gradually become public. The stake was valued at 7 billion euros (about $8.5 billion at the exchange rate of the time) in the deal, out of which Trafigura contributed 1.5 billion euros ($1.8 billion) of its own funds and the remainder was funded by debt.