Share Prices in Russian Oil Companies Rising Despite New Sanctions


MOSCOW, September 12 (RIA Novosti) - Russian oil companies have been reacting feebly on the stock markets to reports of sanctions by the European Union, with some of their share values rising, Moscow Stock Exchange data showed.

The value of Rosneft shares on Friday rose by 0.3 percent, while Gazprom Neft's fell by 0.4 percent, Transneft and Lukoil's grew by 0.2 percent while Surgut's share value fell by 0.2 percent. The MICEX index fell by 0.1 percent at the time.

This reaction by the oil sector, which has significant export revenues in foreign currency reserves, is due to their strong financial position against the weakening ruble. In addition, state-owned companies are likely to be provided with financial support, traders said.

The European Union barred three major Russian oil companies – Rosneft, Transneft, Gazprom Neft – and three major defense companies – Oboronprom, United Aircraft Corporation and Uralvagonzavod – from seeking finance on European capital markets.

The 28-member bloc also banned the sale of dual-technology equipment to nine Russian defense companies including Kalashnikov Concern, Russia's largest producer of automatic and sniper weapons.

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