Glencore to Have Got Shares in RussNeft’s Affiliates

As the Commersant  informs this is how Glencore has used its right to buy out up to 49% shares of RussNeft’s assets, to which the Swiss corporation is entitled by way of compensating for financing the establishment of the oil company and its crediting.
Yesterday it became known that in February 2005 Glencore International acquired minority shares in three affiliates of its strategic partner, NK RussNeft; they are Varieganneft OAO, Ulyanovskneft OAO and SP Nafta-Ulyanovsk  ZAO. The Commersant informs this is how Glencore has used its right to buy out up to 49% shares of RussNeft’s assets, to which the Swiss corporation is entitled by way of compensating for financing the establishment of the oil company and its crediting.
Last year total production volume of Varieganneft, Ulyanovskneft and Nafta-Ulyanovsk was 2.3 million tons of crude oil. At that Russneft owns 38.148% of Varieganneft equities (50.864% of the chartered capital), and still 8.4% of the chartered capital belong to Mikhail Gutseriev. Before the deal with Glencore RussNeft controlled 90.48% stake at Ulyanovskneft and 75.5% stake at Nafta-Ulyanovsk. All these enterprises had been bought from Slavneft in 2002-2003.
According to Glencore’s data published on its site, currently the corporation owns via its affiliates stakes in Varieganneft, Ulyanovskneft and Nafta-Ulyanovsk ranging from 39.8 to 49 %. Varieganneft OAO report for the second quarter of 2005 shows that not long ago the OAO had got a new share holder, Cyprian Turais Investments Ltd., possessing 33.52% stake in the chartered capital of Varieganneft (43.2 % equities). Turais Investments is an affiliate of Glencore International AG. With all this going on the shares of RussNeft and Mikhail Gutseriev have changed. The shares of Varieganneft were acquired by Glencore from some Russian companies acting in the interests of RussNeft, and the shares of Ulyanovskneft and Nafta-Ulyanovsk were bought directly from RussNeft. Hence Glencore owns 49% of Ulyanovskneft and 39.8% of Nafta-Ulyanovsk. According to the information available with the Commersant, Glencore was entitled to acquire up to 49% of RussNeft’s shares in all its affiliates in 2002 as the oil company was established, so far its joint stock structure and funding sources have not been disclosed. The site of Glencore informs that the owner of RussNeft is the former president of Slavneft Mikhail Gutseriev, though according to 2004 RussNeft report he had no his own shares in the company. It’s worth mentioning that the oil market experts are sure that Mikhail Gutseriev and Glencore own RussNeft on parity basis, though they deny it referring to themselves as but strategic partners. Touching upon their cooperation the 2004 RussNeft report refers to Glencore Energy UK Ltd. as a regular uptaker of the company’s oil, the delivery contracts being secured by BNP Paribas’ credits to Russneft’s affiliates. Most likely Glencore may continue to acquire shares in Russneft’s affiliates. Yesterday official representatives of RussNeft and Glencore refused to make any comments as to this point.
The Commersant is going to follow the developments.