Provisional approval was granted
to the deal giving ONGC Videsh Vankorneft Pte. Ltd. (Republic of Singapore) and
ONGC Videsh Limited (Republic of India), both part of the same group of companies,
the right to control 11 percent of voting shares of the charter capital of the
Vankorneft joint stock company (Russian Federation).
The decision granting provisional approval of the deal shall be valid for 36 months.
Briefings were held by Head of the Federal Anti-Monopoly Service Igor Artemyev following the meeting.
Excerpts from the briefing by Head of the Federal Anti-Monopoly Service (FAS) Igor Artemyev following the meeting:
Igor Artemyev: Today the Government Commission on Monitoring Foreign Investment in the Russian economy, headed by Prime Minister Dmitry Medvedev, adopted a decision approving the deal for the purchase of 11 percent of stock of Russia’s oil company Rosneft by a group of Indian companies controlled by the Indian Government.
In the past, the Government Commission approved similar deals on two occasions – the purchase of 23.9 percent and 15 percent of the Vankor Field. I would like to emphasise that the Indian companies will buy stock not in Rosneft itself but in the Vankorneft joint stock company (Rosneft subsidiary). The Vankor Field is Russia’s largest oil and gas deposit.
In total Indian companies will control 49 percent of Vankorneft, while Rosneft will retain controlling interest, allowing the company to maintain control of its subsidiary.
The Indian companies are prepared to pay about one billion dollars for the last, third deal to purchase 11 percent of Vankorneft’s stock.