Sanctions hit Rosneft as $2B Vitol deal scrapped

|About: Rosneft Oil Company OJSC (RNFTF)|By:, SA News Editor

A planned $2B deal between Rosneft (OTC:RNFTF) and oil trader Vitol has been scrapped, FT reports, in the clearest sign yet that tougher western sanctions are hurting the Russian state oil group’s ambitions.

Vitol, the world’s largest independent oil trader, had been in talks to raise the money from international banks to make an advance payment to Rosneft in exchange for future oil supplies, but sources say the deal has been shelved in the wake of the latest round of sanctions.

Bankers and traders say the latest round of sanctions likely will discourage western banks from financing new such prepayment deals, even if existing deals are unaffected.