Igor Artemyev: Many interesting proposals have been considered.
The state-controlled Chinese company China Petroleum will acquire up to 20 percent of the stock in Sibur Holding, Russia’s major petrochemical company. First, it will acquire a 10-percent stake and, over the next three years, it has a right to buy another 10 percent. This is a total of 20 percent. The Chinese company will pay Sibur $1.338 billion for 10 percent. It’s the largest deal among those that the government commission approved today.
Another major deal that was approved is the global acquisition of Baker Hughes Incorporated by Halliburton Company. These companies specialise in drilling and geological prospecting. Under the deal, Halliburton will acquire Baker Hughes Russia, a unit of the US company. It will also acquire Orenburgneftegeofizika, a company involved in drilling operations. The deal will be clinched in the near future.
The next deal is also important: Nasim Bahr Kish, a private Iranian company, will acquire a controlling stake in Solyanka Port in the Astrakhan Region, a Caspian Sea port. This proposal has a long history. It was made long ago, but today all issues have been finalised and the commission has issued official permission.
It is worth about 750 million roubles.
There is another interesting deal. Lupin Ltd, a major Indian pharmaceutical company, will acquire a 100-percent stake in Biokom, a Russian pharmaceutical company. Biokom produces 17 digestive, nervous, musculoskeletal system drugs that are on the Russian list of vital medications. According to the business plan, the investment is $200 million.
These are the four largest deals.
Question: Has the proposal involving the acquisition of a 9.9-percent stake in Yamal SPG by the Silk Road Foundation been considered?
Igor Artemyev: Yesterday, the Government approved the proposal but it has certain specifics. Russian law with regard to state-controlled foreign companies stipulates that they may not acquire more than 25 percent of the stock. To change the situation, an international agreement needs to be ratified. Yesterday, the Government made the relevant decision in support of this move. The Government will shortly submit these documents to the State Duma. We hope the State Duma will ratify the agreement. Then the deal can go ahead.
Question: Was any consideration given to the course of action taken by the commission or the FAS in case there are applications from Turkish companies to acquire certain assets in Russia?
Igor Artemyev: I believe the commission will certainly take the political factor into account.
