The Russian government has canceled the merger between gas monopoly OAO Gazprom and OAO Rosneft. It plans to raise its ownership stake in Gazprom.
Economic development officials said the government will authorize Rosneft to buy an interest in Gazprom in what US analysts called a complex transaction geared to give the Russian government direct majority control over Gazprom.
“The government will contribute Rosneft’s shares to a newly created 100% owned entity, Rosneftegas, which will raise debt to buy out 10.7% of Gazprom’s treasury stock and might subsequently sell part of its stake in Rosneft to repay debt,” said Standard & Poor’s (S&P) Rating Services analyst Elena Anankina. “Details of this new transaction are not clear at this stage.”
Various analysts said that the Russian government could sell part of its existing 100% interest in Rosneft to private investors.
Russia previously had approved the Gazprom-Rosneft merger, which was to have closed by June (OGJ, Mar. 28, 2005, p. 31).
The Gazprom-Rosneft merger first was called into question late last year after Rosneft acquired Yuganskneftegas, the key subsidiary of struggling OAO Yukos.
Yukos filed for bankruptcy protection in Houston federal court during December 2004 in a failed attempt to prevent the sale ofYuganskneftegas (OGJ Online, Dec. 15, 2004). Yukos has dropped its appeals in US courts.
Baikal Finance Group bought Yuganskneftegas at a Dec. 19 government auction in Moscow. On Dec. 23, Rosneft agreed to buy Baikal (OGJ Online, Mar. 15, 2005). ✦
