GO
Loading...

Rusal 'in very good shape' on debt repayments: CFO

Russian aluminium group Rusal said on Thursday it was in "very good shape" and will be able to cope with its debt repayment schedule.

The metal producer, which reported its worst annual results since 2008 with a loss of $3.2 billlion for 2013, said that while it needed more time to come to final agreements with banks, it was confident of the outcome. Net debt at the end of December stood at $10.1 billion.

Read More Can Russia come back from the cold?

Power plant chimneys stand beside a freight wagon yard at United Co. Rusal's alumina
Bloomberg I Getty Images
Power plant chimneys stand beside a freight wagon yard at United Co. Rusal's alumina

"I believe honestly we are in very good shape. In the beginning of the year we have successfully completed the buyback of our rouble bonds for almost half billion dollars. We have syndicated loans with international lenders and Russian lenders for about $3.6 billion and we are at very advanced stage of negotiations with them on rescheduling the principal repayments," chief financial officer of the group, Alexandra Buriko told CNBC.

"We do indeed need some more time to reach the final agreements. We will be completing the negotiations in the next month or so and we will be happy to report to the public as this happens," she said.

Read MoreRussia flaunts grip on Crimea with PM's visit

Buriko said the group was in the process of signing final agreements with Russian lender Sberbank and further support from the Russian government would not be necessary at the moment.

"We haven't discussed this with the government in detail in recent times since as I said we believe we will be very successful in finding an agreement with our international partners.

"Should the situation come to that I am sure we will come to some solution. We have asked our lenders for some forbearances " Buriko said.

The potential impact of U.S. sanctions on Russia has created concern amongst some the firm's trading partners, Buriko said, but not to the extent that would threaten existing contracts.

Read More Russia, West 'doomed to agree' on gas supply issues

"Our customers need our metal and are happy to continue working with us. We don't feel any pressing situation," she said.

Talks of intensified sanctions that could lead Russia to abandoning the dollar as a reserve currency, meaning companies would be unable to settle in U.S. dollars, are also not a major concern for the metal producer, she said.

"Well, if it comes to an extreme and we cannot settle with our customers in U.S. dollars, not only our business but a lot of companies will be facing some new issues," said Buriko.

"There have been talks about a new national system and settlement in roubles, but our view is the current system will remain in place," she added.

CNBC Global CFO Council

Video

  • Jan Siegmund, ADP CFO, and Bill Gerber, TD Ameritrade CFO, discuss how America's corporate leaders are viewing today's employment data and the current state of the U.S. economy.

  • Jon Moeller, Procter & Gamble CFO, breaks down P&G's quarterly numbers and discusses the company's cost-cutting measures.

  • UPS CFO Kurt Kuehn on CNBC's Squawk on the Street on his company's decision to stop deliveries for illegal online pharmacies and pay $40 million to end a Federal criminal probe into its shipping practices. Rival FedEx was in court today fighting similar charges.