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. Last Updated: 07/27/2016

Rosneftegaz Loan One Step Closer

State-owned Rosneftegaz moved a step closer toward taking out a $7.5 billion syndicated loan on Tuesday, when the Economic Development and Trade Ministry sent a key directive to the company and the government.

Ministry spokeswoman Galina Voronchenkova confirmed that the draft directive on the loan, the largest ever to a Russian company, had been submitted, but she declined to elaborate.

Rosneftegaz is a special-purpose vehicle set up to finance the purchase by the state of a stake in Gazprom.

Interfax reported on Monday that Rosneftegaz's board would probably approve the one-year bridging loan this week. Prime Minister Mikhail Fradkov is expected to sign off on it without having to convene a full Cabinet debate.

Sources familiar with negotiations say Rosneftegaz has agreed with its banks to terms on a loan priced at 1.55 percent over LIBOR, secured on 49 percent of the shares its main asset, state oil firm Rosneft.