Rosneft shares soar after it repays $7bn in debt and says 'dollars are flowing'

Russia's state-run oil giant Rosneft has repaid $7bn in debt and said its dollar flow was healthy enough to meet its obligations to buy TNK-BP.

The oil giant has been the subject of economic sanctions from the United States and the European Union, restricting its access to new technologies and global financial markets.

The company has settled $24bn (£15bn, €20bn) in debt this year and has a sufficient surplus of foreign currency to cover its debt, Rosneft boss Igor Sechin said in a statement.

"To service debt the company does not need to enter the currency market because it generates enough foreign currency earnings," Sechin said.

The company's shares rose by 4.43% by 12.21pm GMT in London.

The oil producer is responsible for around 40% of the country's output but has been hit with a double external shock in 2014. Crude oil prices have declined dramatically since the summer, losing around 40% of their value in the past six months.

Meanwhile, the company's access to international finance was severely curtailed in the autumn when the West slapped sanctions on the producer.

The curbs on sharing technology have hampered Rosneft's plans to expand offshore oil exploration in the Arctic region, while the restriction on access to finance caused the company to ask the Russian government for access to a sovereign wealth fund.

Sechin confirmed the company could receive government support from the Wellbeing Fund, which would be used for domestic projects.