Gazprom, the Russian oil and gas giant, plans to issue the first new Russian Eurobond since 1998, but investors have warned that debt capital will not be cheap.

The company has appointed Credit Suisse First Boston (CSFB) and Schroder Salomon Smith Barney (SSSB) to lead a deal by the end of the first quarter. Early indications are of a medium-term deal of up to $500m ($529m).