Russia’s Lukoil taps domestic funding as foreign lending wanes

Russian oil and gas group Lukoil, which tapped the international loan market twice in 2008, secured a new Eu1bn facility this week from Gazprombank, in a further sign that the country’s borrowers are increasingly turning to domestic lenders as the presence of foreign investors continues to wane. The price of securing this funding is also still on the rise, and borrowers are now paying exorbitant margins compared to last year.