Interfax reported that Bank of Moscow has issued a two year loan of USD 300 million to oil producer Tatneft.

According to the report, the loan is intended to bolster the oil company's working capital and go towards the construction of oil refining and petrochemical plants in Nizhnekamsk.

It was earlier reported that Tatneft signed an unsecured loan agreement in September with BOM worth USD 300 million.

The company's plants in Nizhnekamsk will be brought online in December 2010. Initial capacity for refining is planned at 7 million tonnes of oil but this figure could later be increased to 14 million tonnes through refinement for small scale companies in Tatarstan. The launch of the first facility of the new refinery has been estimated at USD 4.5 billion to USD 5 billion.

Since 2007, BOM has provided oil and gas companies over RUB 45 billion in loan resources.

(Sourced from Interfax)