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Chinese agency gives Gazprom AAA rating

The Chinese rating agency CSCI Pengyuan gave a triple-A rating to the Russian oil giant Gazprom, which was blacklisted by the United States. Media reports said Beijing is preparing to reopen their domestic bond market for major Russian energy companies.

"Gazprom’s rating reflects both its strategic importance and its legal ties with the Russian government," CSCI Pengyuan stated.

It added that the firm's "strong business profile" as a global leader in the oil and gas industry, and its significant position on the Russian energy market, underpins its credit profile.

The "AAA", with a stable outlook, rating came only days after Russia and China endorsed the Power of Siberia 2 Pipeline.

Gazprom announced the news during Russian President Vladimir Putin’s visit to China.

The Financial Times, citing anonymous sources, reported that senior Chinese financial regulators informed top Russian energy executives late last month that they would support the plans of their companies to sell "panda bond" renminbi.

Before selling bonds in China, companies usually obtain credit ratings.

CSCI Pengyuan cited the "high geopolitical risk" of Gazprom. This company was sanctioned in 2022 by the U.S. after Russia invaded Ukraine.

The rating agency stated that "Sanctions, geopolitical disruptions and a decrease in the volume and revenue of gas exports in 2023 have negatively affected the company's operation."

As the geopolitical environment continues to change, operational uncertainty persists.

Last month, CSCI Pengyuan assigned an "AAA" rating to Zarubezhneft. This is a mid-scale, upstream oil company owned entirely by the Russian Federation. Shanghai Newsroom, Sumana Niandy (Editing)

(source: Reuters)