Lloyd's pulls out of $2B Rosneft-BP loan

|By:, SA News Editor

Lloyds Bank (LYG) has withdrawn as a mandated lead arranger of a $1.5B-$2B (£895M-£1.19B) on a loan to finance BP's purchase of crude oil and refined products from Rosneft (RNFTF), highlighting the growing unease among Western banks in funding Russian deals.

The loan was to be similar to previous such deals Rosneft had with BP or trading houses Glencore and Vitol, but Lloyds decided to walk away after several weeks of hesitation.

The bank is 25% owned by the U.K. government, and Lloyds' may have wanted to avoiding embarrassing the government, considering the current political situation with Russia.