STEF Russia: Russian borrowers facing turbulent waters

Though some believe the current political issues faced by the country might not affect their ability to borrow.

When asked whether 2014 still remains on track to be a good year to be a borrower in the Russia, members of the Annual Borrowers' Panel at Trade Finance /Euromoney Seminars' Structured Trade and Export Finance Russia 2014 Conference were reticent in their outlooks.

Ilya Krasnov, Metalloinvest's deputy head of corporate finance, thinks the political factor has been overplayed: "For some companies, 2014 will be a good year. A lot will depend on the refinancing schedule, the credit portfolios and the relations with creditors - whether companies have a long-term partnership in place with banks.

"Political factors have led to a nervous reaction in the markets, and to a large extent that has been an emotional reaction. But that may not necessarily affect the ability to borrow, there are many factors in play and we should not overestimate the significance of the political factor."

Dmitry Muz, head of treasury at Uralkali, agrees with Krasnov, stating that the situation will affect different borrowers to varying degrees: "I think a lot will depend on the borrower, on the need of the borrower to borrow and on the quality of the borrower. If the need is there and the quality is high, it's going to be a good year; if not, it isn't.

However, Anna Semenova, United Petrochemical Company's head of corporate finance and treasury, was more philosophical in her outlook, hinting that borrowers will have to wait until the political crisis subsides before they return to the loans market: "I think the political factor is just like the wind. The wind is now strong and the waves are high, and when that's the case it is best not to set sail. But when the wind subsides, then you can set your sail."

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