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Other financial assets
 12 Months Ended
Dec. 31, 2018
Disclosure Of Financial Assets Explanatory [Abstract]  
Disclosure Of Other Non Current Financial Assets [Text Block]
15 Other financial assets
 
 
December 31, 2018
 
December 31, 2017
(€ million)
 
Current
 
Non-current
 
Current
 
Non-current
Long-term financing receivables held for operating purposes
 
 
61
 
 
 
1,189
 
 
 
23
 
 
 
1,602
 
Short-term financing receivables held for operating purposes
 
 
51 
 
 
 
 
 
 
84
 
 
 
 
 
 
 
 
112
 
 
 
1,189
 
 
 
107
 
 
 
1,602
 
Financing receivables held for non-operating purposes
 
 
188
 
 
 
 
 
 
 
209
 
 
 
 
 
 
 
 
 
300
 
 
 
 
1,189
 
 
 
316
 
 
 
1,602
 
Securities held for operating purposes
 
 
 
 
 
 
64
 
 
 
 
 
 
 
73
 
 
 
 
300
 
 
 
1,253
 
 
 
316
 
 
 
1,675
 
 
Financing receivables are stated net of allowance for doubtful accounts as follows:
 
(€ million)
 
Allowance for

doubtful accounts 
of
financing 
receivables
Carrying amount
at December 31, 2017
 
 
730 
Additions
 
 
279 
Deductions
 
 
(596
)
Currency translation differences
 
 
17 
Carrying amount
at December 31, 2018
 
 
430 
 
Financing receivables held for operating purposes of  €
1,301
million 
(€
1,709
million at
December 31, 2017
) related principally to funds provided to joint ventures and associates in the Exploration & Production segment 
(€
1,075
million) 
and the Gas & Power segment (€
103
 million). The greatest exposure is towards the joint venture Cardón IV SA (Eni’s interest 50
%) 
in Venezuela, which is currently operating the Perla offshore gas field, for €
705
million at
December 31, 2018
 
(€
955
million at
December 31, 2017
). The recoverability of those assets was assessed considering the performance of the industrial initiatives financed in addition to other factors.
Financing receivables held for operating purposes due beyond five years amounted to 
€1,088 million
(€1,393 million at December 31, 2017).
The fair value of non-current financing receivables held for operating purposes of  €
1,188
million has been estimated based on the present value of expected future cash flows discounted at rates ranging from
-
0.2
% to
2.9
%
(-
0.2
% and
2.5
% at
December 31, 2017
). This valuation methodology does not apply to assess the recoverability of the financial loan granted to the joint venture Cardón IV SA to fund the development projects carried out by the venture, which can be assimilated to net capital employed. The recoverability of this financing loans depends on the future cash flows of the industrial project, which are exposed to a credit risk given the difficult financial condition of Venezuela. In assessing the recoverability of the loan, management carried out an appreciation of the risk to convert in cash the project’s future revenues by projecting a deferral in the timing of revenues collection and discounting the resulting future cash flows at a rate adjusted for the Country risk that factors in the deteriorated operating environment of the Country. The outcomes of the assessment confirmed the carrying amount of the financial loan.
The recoverability of other long-term financial assets was assessed by considering the expected probability default in the next twelve months only, as the creditworthiness suffered no significant deterioration in the reporting period.
 
Additions to the allowance for doubtful accounts related to a loss taken at a financing receivable granted to a joint venture in Russia engaged in the execution of an exploratory project in the Black Sea due to the unsuccessful outcome of the initiative.
 
Financing receivables held for non-operating purposes related to bank deposits with the purpose to invest cash surpluses and restricted deposits in escrow to guarantee transactions on derivative contracts.
 
Financing receivables held for non operating purposes
 were denominated in euro and U.S. dollar for €
188
million and €
1,299
million, respectively.
 
Securities held for operating purpose related to listed bonds issued by sovereign states (listed bonds issued by sovereign states 
for €
69
million and by the European Investment Bank for
€
4
million at
December 31, 2017
)
.
 
Securities for  €
20
million (same amount as of
December 31, 2017
) were pledged as guarantee of the deposit for gas cylinders as provided for by the Italian law
.
The following table analyses securities per issuing entity:
 
 
Amortized
cost

(€ million
)
 
Nominal
value
(€ million)
 
Fair
Value
(€ million)
 
Nominal
rate of
return (%)
 
Maturity
date
 
Rating-
Moody’s
 
Rating-
S&P
Sovereign states
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate bonds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Italy
 
 
24
 
 
 
24
 
 
 
25
 
 
 
from 0.20 to
4.75
 
 
 
from 2019 to 2025
 
 
 
Baa3
 
 
 
BBB
 
Others (*)
 
 
29
 
 
 
29
 
 
 
29
 
 
 
from
0.05
to
4.40
 
 
 
from 2019 to 2023
 
 
 
from Aa3 to Baa1
 
 
 
from AA to A-
 
Floating rate bonds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Italy
 
 
8
 
 
 
8
 
 
 
8
 
 
 
 
 
 
 
from 2019 to 2020
 
 
 
Baa3
 
 
 
BBB
 
Others (*)
 
 
3
 
 
 
3
 
 
 
3
 
 
 
 
 
 
 
2022
 
 
 
Baa3
 
 
 
BBB-
 
Total sovereign states
 
 
64
 
 
 
64
 
 
 
65
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(*)
  Amounts included herein are lower than €25 million.
 
 
Securities having a maturity within five years amounted to
€
63 million.
The fair value of securities was derived from quoted market prices.
Receivables with related parties are described in note 36 — Transactions with related parties.