Posted by: russiaoilandgas | July 30, 2007

Besieged RussNeft to be Bought by Basic Element

Vladimir Putin Oleg Deripaska Russneft Basic Elements Yukos AssetsRussneft, whose owner, Mikhail Gutseriyev, was charged with tax evasion and illegal business practices for acquiring Yukos assets before the company was declared bankrupt, will be bought by the Russian billionaire Oleg Deripaska’s Basic Element investment group, pending a decision by the Russian Federal Monopoly Service.The deal has been confirmed by both sides and, according to the FT, the assets of Russneft, reputedly worth $6.5 billion have been handed over to investment structures.

RussNeft was established in 2002 and at present finds itself among the 12 leading Russian oil companies –employing over 20,000 people. The company currently comprises 30 production assets, 2 refineries and a petrol station network operating in 22 Russian regions and CIS countries. RussNeft is developing over 170 oilfields with total oil reserves amounting to over 630 million tons. Annual production rose to 17 million tons of crude in 2004.

RussNeft stated it intends to boost its production capacity by … for the full story, click here.

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Responses

  1. This is not surprising news…Mr. Gutseriev is a well-known con-man who has hidden and shuffled assets between companies for a while now. I found a report that predicted this a few months ago along with the oil expansion in Russia…here’s the link.

    http://www.whiskeyandgunpowder.com/ppc/RussianOilReport2.html

    -Cheers!

  2. It really is difficult to find a single Oligarch-type figure in Russia who is whiter than white. I certainly shed no tears when one finds himself under the Kremlin kosh for his business activites.

    What frustrates me most is when the Western press get all hysterical about this. Let’s face facts: if the likes of Khodorkovskiy was trailed in the US or Britain, he’d have been found just as guilty as he was in Russia.

    Where do you think Russneft will end up? Since I wrote this article is seems less likely to end up as a Basic Elements subsidurary, and more likely to be swallowed into the Rosneft Empire.


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