OJSC Oil Company Rosneft Consolidated Financial Statements

OJSC Oil Company Rosneft
Notes to Consolidated Financial Statements (continued)
16. Short-Term Loans and Long-Term Debt (continued)
In March-May 2007, the Company obtained bridge financing from a consortium of international banks
in the total amount of US$ 22.0 billion to finance acquisitions (see Note 3). These bridge loans were
fully repaid or refinanced in 2008.
As of December 31, 2008, weighted average interest rates on short-term loans in foreign currency and
in RUB were 7.66% and 12.96%, respectively.
Customer deposits represent fixed-term deposits placed by customers with the Company's subsidiary
bank, denominated in RUB and foreign currencies. Customer deposits denominated in RUB bear an
interest rate ranging from 0.01% p.a. to 13.1% p.a. Customer deposits denominated in foreign
currencies bear an interest rate ranging from 0.01% p.a. to 15.0% p.a.
As of December 31, 2008, weighted average interest rate on promissory notes was 10.44%. The
promissory notes are recorded at amortized cost.
Promissory notes payable – Yukos related represent financing originally received from the entities that
were related to Yukos Oil Company on the debt issue date. The promissory notes are primarily
payable on demand and bear interest rates ranging from 0% to 18% p.a. The promissory notes are
recorded at amortized cost.
RUB denominated borrowings are interest-free and were received from equity investees.
RUB denominated borrowings – Yukos related primarily include borrowings provided by Yukos
Capital S.a.r.l., which bore interest of 9% p.a. and matured at the end of 2007 (see Note 24).
In June 2008, the Group sold 412.86 million treasury shares of Rosneft to a syndicate of international
banks for a cash consideration of US$ 2.35 billion payable under a repurchase agreement. The
Company has a right and obligation to repurchase the shares within one year. The repurchase
obligation carries an interest of 5.76% p.a. In accordance with the repurchase agreement, this
transaction was accounted for in the consolidated balance sheet as secured financing. In the third and
fourth quarters of 2008, as a result of margin calls Rosneft transferred an additional 82.07 million
treasury shares as collateral and paid US$ 1.39 billion in cash, of which US$ 0.5 billion was credited
towards the repurchase obligation. As of December 31, 2008, the repurchase obligation (without
accrued interest) amounted to US$ 1.9 billion.
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