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. Last Updated: 07/27/2016

Gref Sees No State Company Defaults

State-run companies that have accumulated high debt will not default on their obligations, Economic Development and Trade Minister German Gref said Saturday.

"We have the ability not to allow any defaults," Gref told reporters in Kazan.

State-run oil company Rosneft borrowed $22 billion earlier this year for the asset sales of Yukos, once Russia's largest oil exporter. Yukos was pushed into bankruptcy by billions of dollars in back tax claims in 2006.

Given today's level of energy prices, there should not be any concern about defaults by Rosneft or state-run natural gas exporter Gazprom, Gref said.

Russia has reclassified Rosneft as a strategic asset, meaning the oil major would adhere to different bankruptcy procedures than companies not defined as strategic, Gref said Sunday at a separate press briefing.