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Russia's VTB head: Rosneft-Essar deal not subject to sanctions

Reuters  |  GOA, India 

GOA, (Reuters) - deal in which group led by Russian major will acquire India's has been specially structured to avoid falling foul of Western sanctions, Andrey Kostin, head of Russian lender VTB, told Reuters on Saturday.

India's debt-laden Group confirmed on Saturday it had agreed to sell 98 percent interest in its unit to the consortium led by Rosneft, giving the Russian energy giant gateway into the world's fastest-growing fuel market. VTB acted as Essar's adviser on the deal.

Speaking to Reuters in an interview on the sidelines of talks between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, Kostin said the purchase would not violate Western over Russia's role in the Ukraine crisis because will only acquire 49 percent stake.

"will not get controlling stake, partly because of these reasons (sanctions)", he said.

Rosneft's partners Trafigura and Russian fund United Capital Partners (UCP) will acquire the remaining 49 percent. will pay around $3.5 billion for its stake, the same amount as Trafigura and UCP.

Kostin said neither nor Trafigura had borrowed any money to finance the purchase.

"Trafigura and are paying on their own, with no funds lent from VTB", he said. "They (the buyers) will pay with cash, it is cash deal".

In parallel with the deal, VTB has said it will lend around $3.9 billion for debt reconstruction. Kostin said UCP and could consider selling part of their stakes in the future.

"I think UCP, which is portfolio fund, will ... sell, maybe to firms from this region, from Asia," he said. "(Rosneft)may also sell, but it is likely to hold on. It sees an opportunity to expand in the region."

(Reporting by Denis Pinchuk; Editing by Jack Stubbs and Hugh Lawson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Russia's VTB head: Rosneft-Essar deal not subject to sanctions

GOA, India (Reuters) - A deal in which a group led by Russian oil major Rosneft will acquire India's Essar Oil has been specially structured to avoid falling foul of Western sanctions, Andrey Kostin, head of Russian lender VTB, told Reuters on Saturday.

GOA, (Reuters) - deal in which group led by Russian major will acquire India's has been specially structured to avoid falling foul of Western sanctions, Andrey Kostin, head of Russian lender VTB, told Reuters on Saturday.

India's debt-laden Group confirmed on Saturday it had agreed to sell 98 percent interest in its unit to the consortium led by Rosneft, giving the Russian energy giant gateway into the world's fastest-growing fuel market. VTB acted as Essar's adviser on the deal.

Speaking to Reuters in an interview on the sidelines of talks between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, Kostin said the purchase would not violate Western over Russia's role in the Ukraine crisis because will only acquire 49 percent stake.

"will not get controlling stake, partly because of these reasons (sanctions)", he said.

Rosneft's partners Trafigura and Russian fund United Capital Partners (UCP) will acquire the remaining 49 percent. will pay around $3.5 billion for its stake, the same amount as Trafigura and UCP.

Kostin said neither nor Trafigura had borrowed any money to finance the purchase.

"Trafigura and are paying on their own, with no funds lent from VTB", he said. "They (the buyers) will pay with cash, it is cash deal".

In parallel with the deal, VTB has said it will lend around $3.9 billion for debt reconstruction. Kostin said UCP and could consider selling part of their stakes in the future.

"I think UCP, which is portfolio fund, will ... sell, maybe to firms from this region, from Asia," he said. "(Rosneft)may also sell, but it is likely to hold on. It sees an opportunity to expand in the region."

(Reporting by Denis Pinchuk; Editing by Jack Stubbs and Hugh Lawson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
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Russia's VTB head: Rosneft-Essar deal not subject to sanctions

GOA, (Reuters) - deal in which group led by Russian major will acquire India's has been specially structured to avoid falling foul of Western sanctions, Andrey Kostin, head of Russian lender VTB, told Reuters on Saturday.

India's debt-laden Group confirmed on Saturday it had agreed to sell 98 percent interest in its unit to the consortium led by Rosneft, giving the Russian energy giant gateway into the world's fastest-growing fuel market. VTB acted as Essar's adviser on the deal.

Speaking to Reuters in an interview on the sidelines of talks between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, Kostin said the purchase would not violate Western over Russia's role in the Ukraine crisis because will only acquire 49 percent stake.

"will not get controlling stake, partly because of these reasons (sanctions)", he said.

Rosneft's partners Trafigura and Russian fund United Capital Partners (UCP) will acquire the remaining 49 percent. will pay around $3.5 billion for its stake, the same amount as Trafigura and UCP.

Kostin said neither nor Trafigura had borrowed any money to finance the purchase.

"Trafigura and are paying on their own, with no funds lent from VTB", he said. "They (the buyers) will pay with cash, it is cash deal".

In parallel with the deal, VTB has said it will lend around $3.9 billion for debt reconstruction. Kostin said UCP and could consider selling part of their stakes in the future.

"I think UCP, which is portfolio fund, will ... sell, maybe to firms from this region, from Asia," he said. "(Rosneft)may also sell, but it is likely to hold on. It sees an opportunity to expand in the region."

(Reporting by Denis Pinchuk; Editing by Jack Stubbs and Hugh Lawson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

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