The corporate policy priorities in the financial management ensure financing of production, investment and social activities of the Company and efficient use of financial resources.
All the obligations to pay for works and services, for products delivered, payment of taxes and payments to non-budgetary funds were performed by PJSC TATNEFT in full and in a timely manner. The activities of the Company in 2016 were carried out under conditions of considerable instability expressed by drastic fluctuations in crude oil prices and changes in the national currency exchange rate.
In 2016, PJSC TATNEFT used to place temporarily idle funds in the financial market with the income from deposits exceeding the amount of RUB 4.3 billion.
The Company did not borrow any funds in 2016. Loans for US $ 32.9 million were repaid during 2016,
The first stage of creating a single Treasury of the Tatneft Group was completed in which in the Treasury circuit included 10 subsidiaries. A single treasury platform allows establishing control over the financial operations of the participants, unify the procedures, optimize the cost of banking services and increase the income of all participants.
In 2016, the Company performed the first foreign exchange risk hedging transactions using currency forwards. Closing transactions yielded income, which compensated for the decline in the dollar exchange rate in a given period, which confirmed the correctness of the identified foreign exchange risk and its leveling tool.
The Financial Department carried out a large amount of work on optimizing settlements with counterparties to ensure the efficient use of funds. This work will be continued in future. In view of reducing distractions of the Company's turnover funds and accelerating settlements with permanent counterparties, reciprocal obligations are redeemed through the Mutual Claims Set-Off Center (MCSC). Bank clearings through MCSCs exceeded the amount of RUB 25.2 billion in 2016.