Production/development equipment


Subjects in leasing are separate units or sophisticated packages of equipment for mining operations, exploration/production of hydrocarbons, ores, other natural resources, including those for seismic studies, geological surveying, petroleum production and refining, as well as other equipment and machinery for oil industry servicing and oil production enterprises, mining enterprises.

Specific features:

  • Large investments due to high cost of facilities in question;
  • Normally, general contractors and suppliers are selected by lessees on a tender basis;
  • Holiday on capital repayment until the facility is commissioned;
  • Elevated requirements to lessee’s financial stability because of a low liquidity of such subjects in leasing.

Advantages:

  • Deals can be entered into throughout the Russian Federation, as well as in the Republic of Belarus and Ukraine;
  • Making a schedule of payments with due consideration of lessee’s requests;
  • Mobilization of long-term financing without additional collateral security;
  • Lease payments are recognized in full as costs
  • Applying the accelerated depreciation method with a factor of up to 3 helps reducing the overall property tax;
  • Accounting and tax risks relating to the acquisition of a subject of leasing (including the risk of delayed VAT refund) lie with lessor;
  • Balance sheet structure enhancement (debt not reflected in liabilities);
  • Protection against third party claims (the subject of leasing is owned by lessor);
  • Opportunities for mobilizing the financing from international export-import banks or insurance agencies;
  • Transactions can be structured with involvement of both Russian and foreign jurisdiction companies.

Terms and conditions:

Period of leasing: 24 to 84 months (as agreed upon by the parties)
Amount of financing: unlimited (from above)
Amount of advance payment: 10% or higher
Individual schedule of lease payments
Currency of contracts of leasing: ruble, euro, US dollar