Problems of financial support of the organization-supplier of petroleum products within the framework of the northern delivery

The supply of petroleum products and foodstuffs to the territories of the North and the Arctic is an important component of maintaining proper functioning and life support, and is of strategic importance for the economy of the Republic of Sakha (Yakutia). Because of high transportation costs and complex logistics, the activities of companies involved in the delivery of products within the framework of the northern importation are fraught with great difficulties and financial costs, and their risks are multiplied. The purpose of this study is to identify the factors that have the most significant impact on the financial position and sustainability of Sakhaneftegazsbyt JSC, which is responsible for the delivery of petroleum products and fuel to the north of the republic. The main research methods chosen in this case are economic and financial analysis. The results of the research have shown that because of the specific features of business activity, giving rise to a large duration of sales of current assets, Sakhaneftegazsbyt JSC is inevitably forced to attract borrowed capital in significant amounts. Because of this, the financial stability of the company is reduced and risks of insolvency arise. The situation is compounded by the growth of the key rate and the corresponding increase in the cost of commercial loans. In case the company’s financial situation gets worse, it would certainly receive state support sufficient to overcome the crisis situation. However, the expansion of opportunities for providing loans to organisations in charge of northern imports on favourable terms would avoid the need for such a support at all. 

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