Gazprom, Rosneft at War of Succession
Sibneft and Gazprom have reached principal agreement on selling Sibneft stocks to the gas monopoly, Interfax reported Friday, pointing out the deal parameters, including the budget and sources of funding, have not been determined yet. As long as the price remains unclear, it is too early to speak of any agreement, sources of Kommersant insist. As informed earlier, Gazprom is eying the stake of 92 percent in Sibneft (where the principal holders, including Chukotka’s governor Roman Abramovich, own 72 percent) and is in talks to raise a loan of $10 billion.
It is too early to speak of the general agreement, the source of Kommersant said on condition of anonymity, the more so that Sibneft is in talks with a raft of potential buyers, both Russian and foreign ones, and Russia’s Economic Development and Trade Minister German Gref specified Friday Gazprom BOD has not discussed Sibneft purchase.
In addition, the amount of $10 billion negotiated by Gazprom with the western banks won’t suffice to buy out 92 percent in Sibneft, which market value stood at $16.1 billion Friday. Gazprom will have to provide either the stocks of its subsidiaries or the options for their purchase, the source supposed.
Of 92 percent in Sibneft, the stake of 20 percent is still retained by YUKOS, which bought it for $3 billion under the merger deal with Sibneft. Sibneft is unable to get back the stake via courts as it did with the other 72 percent. Although the parties are in talks about the back deal but it is yet premature to speak of its completion, a source close to YUKOS specified to Kommersant, adding they have failed yet to agree on the price, dividend settlement and payment procedures. “It has been agreed only to evaluate the said 20 percent,” the source said. Besides, the back deal completion requires removal of attachment from the YUKOS-owned stake in Sibneft.
Another hurdle is Rosneft with its apparent interest in the YUKOS-owned stake in Sibneft. 2004 report of Rosneft says the company is set to get from YUKOS the assets worth $3.5 billion before the end of the year in settlement for the debt due to Yuganskneftegaz for the crude shipped in 2004 but not paid up to-date.
Therefore, the interests of Gazprom and Rosneft in respect of the YUKOS stake in Sibneft are quite the opposite. Gazprom needs attachment removal, Rosneft wants the stocks to be seized. In view of the above, the outcome of Sibneft-YUKOS talks is likely to depend not on the above companies, but rather on the Kremlin’s choice between Gazprom and Rosneft scenarios. To be more precise, everything comes down to the battle between Dmitry Medvedev, head of the president’s administration and chairman of Gazprom BOD, and Igor Sechin, Medvedev’s deputy and chairman of Rosneft BOD. The fight is going on for a year with varying success.
Exactly this opposition is the reason why Gazprom is determined to buy out as much as it can in Sibneft, a source close to Sibneft-Gazprom talks said, specifying, even if deprived of the blocking stake, another big holder may hinder the management of the asset, for instance, in time of its disposal or when entering into a contract for selling the crude – Gazprom will be willing to sell it via Gazexport, while Rosneft is bound to offer its own trader. “Gazprom doesn’t need such problems,” the source made it clear.
And last but not least, Gazprom’s spokesman denied the agreement with Sibneft had been reached. “This supposition doesn’t correspond to reality,” he said. In Sibneft, they declined to comment.
by
www.kommersant.com
All the Article in Russian as of Aug. 22, 2005
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