Societe Generale pulls out of bigAnglo-Russian oil loan

20th August 2004, Comments 0 comments

PARIS, Aug 20 (AFP) - Two major European banks have pulled out of a deal involving a large loan to Anglo-Russian oil group TNK-BP on fears the Kremlin's campaign against Russian oil giant Yukos signals a wider deterioration of conditions for property rights, the Financial Times reported Friday.

PARIS, Aug 20 (AFP) - Two major European banks have pulled out of a deal involving a large loan to Anglo-Russian oil group TNK-BP on fears the Kremlin's campaign against Russian oil giant Yukos signals a wider deterioration of conditions for property rights, the Financial Times reported Friday.

Citing unnamed banking sources, the report said the size of the TNK-BP loan initially planned to be USD 600 million (EUR 484.9 million) might have to be reduced to USD 400-500 million because of the withdrawal of French Societe Generale and the Dutch bank ING.

"It's not a reflection of the company's credit quality. It's matter of Russian risk," one banker was quoted as saying.

The remaining underwriters include coordinator Citigroup of the United States, as well as six other banks.

TNK-BP is jointly owned by British oil giant BP and Russia's TNK. The joint venture represents Russia's biggest foreign direct investment deal.

© AFP

Subject: French news

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