Russian Oil Producer in Financing for New Refinery

Cleary Gottlieb represented Tatneft, Russia’s sixth largest oil producer, and its affiliate Taneco in a $2 billion senior secured facility from BNP Paribas to finance the construction of the first phase of a new oil refinery in Tatarstan. The facility was signed in November. Cleary Gottlieb also represented Bank Zenit in a related $350 million letter of credit to fund the purchase of supplies and services for the project.

The new refinery is the largest under construction today in Russia. By refining Tatneft’s high-sulfur “sour” crude, the refinery will pump higher-quality “sweet” crude into the national pipeline system and help reduce Russian crude’s pricing discount off international oil pricing while also increasing light products export. The Russian government is also providing $660 million in financing for the refinery, which is considered a project of national strategic importance.