Mikhail Gutseriev Crossing Over the Border

Private company RussNeft is assuming the role of Russia’s political representative at the international oil market. The company, actively acquiring interior assets during the last year, has been approved by the government as a candidate for buying out Yukos’ share in Slovak company Transpetrol. At first sight the delegated purchase does not seem in the line with Russneft’s policy of developing assets.
The government of RF backs up RussNeft as a candidate for acquiring Yukos’ share in Slovak Pipeline Company Transpetrol, said Economic Development Deputy Minister Andrey Sharonov. A respective letter by Economic Development Minister German Greff has been sent to the attention of Slovakia’s government.
Yukos possesses 49% stake of the company controlling Slovak portion of Druzhba main pipeline. Sharonov pointed out that during the talks with Slovakian Minister on Economics Yirko Malkharek last Monday an idea was expressed that the share of Yukos in Transpetrol must be sold to a candidate whom the Russian government could be content with. His predecessor strongly insisted on changing the owner without considering the interests of RF.
The company of Mikhail Gutseriev has done better than Tatneft, which also applied for the purchase of the Slovak asset but later, according to Andrey Sharonov, declined participation in the auction. For RussNeft, used to arrange for acquisition of new assets in atmosphere of strict confidence, such public announcement by the government concerning approval of its candidacy came as a surprise. In the end the company declined to comment.
Most of the market experts also wonder at RussNeft choice of the first foreign acquisition. Based on the economics of the company, such share in the pipeline is of no use to Russneft, Troika Dialogue analyst Valerie Nesterov gets bewildered. “From the point of view of the company’s development strategy I don’t understand what this asset is going to contribute to,” points out Brunswick analyst Kakha Kiknavelidze. It can’t be left out that thus RussNeft is following ‘advice’ of the government in exchange of the possibility of continuing active development of its business in Russia, Nesterov adds. This year the company of Mikhail Gutseriev has become a leader at the metropolitan petrol stations market and seeks after TNK-BP’s assets, it being known, as Business informed earlier, that a favorable decision on the matter has already been made and is in for approval by the Board of the Russian-British company. The next move will consistently aim at going out to international markets, and such outland expansion of Russneft in no way contradicts the usual scheme of actions by dozens of other companies, points out Igor Nickolayev, an analyst at FBC’s strategic analysis service.       
It is even more probable that Russneft may pin its earnest hopes on Slovak oil market. According to the information of analytical group Energy Intelligence, in the beginning of 2006 RussNeft friendly Swiss trader Fisotra Management S.A. is going to take a dominating position in delivering Russian crude oil to Czechia and Slovakia. Russia’s division of the trader is headed by ex-vice-president of Slavneft Dmitry Perevalov who was in the management of the company under Mikhail Gutseriev. In September Fisotra delivered to Czechia only 50 thousand tons of crude oil, however already in October its deliveries to Czechia boosted to 216 thousand tons out of the total 432 thousand tons and to 200 thousand tons in Slovakia out of 398 thousands.
Igor Nickolayev is confident that redemption of the shares possessed by Yukos has been agreed upon with the government. The government had better ‘diversify’ assets of the out of favor company in order to sweep aside unnecessary allegations that they all pass into the hands of state-run entities.