Interfax reported that the European Bank for Reconstruction and Development has signed an agreement with Vostok Energy Limited which holds licenses to develop oil fields in the Saratov region to provide USD 100 million in financing.

The funds will be earmarked for financing the developing the western section of the Bortovoye oil and gas field. The bank will acquire 7% of Vostock Energy's charter capital for USD 40 million and also provide a convertible loan worth up USD 60 million.

A representative of the EBRD will hold a position on the company's board of director, which will allow the bank involvement in Vostock Energy's corporate management and the decision making process.

Vostok Energy plans to invest over USD 220 million in the development of Bortovoye field in 2009 to 2011.

(Sourced from Interfax)