PRESS: Repsol to sell stake in JVs to Gazprom Neft, leave Russia

MOSCOW, Dec 20 (PRIME) -- Spain’s largest oil and gas company Repsol plans to sell its 68% stake in Eurotek-Yugra and a 50.01% stake in ASB Geo to its partner in the joint ventures Gazprom Neft “at a token price” to leave the Russian oil business, Kommersant business daily reported on Monday quoting sources.

The companies plan to close the deal until the end of 2021, the sources told Kommersant.

Repsol’s decision is in line with its de-carbonization strategy and the unprofitableness of its Russian business. The Spanish company wanted the government to switch Eurotek-Yugra to the excessive profits tax, but since participation in the excess profits tax pilot project was limited, Gazprom Neft preferred to switch its own assets into the new taxation regime, the business daily reported.

Karen Dashyan from Advance Capital said that Repsol’s investment in Russia peaked during the times of high oil prices, but after that the company tried to seek new ways of cooperation with state-controlled companies. All foreign companies’ withdrawals from Russia in the past few years were done with significant write-offs of investment as the initial deals were strategic. Repsol could have spent at least U.S. $300 million on the Russian assets, this is why it is unlikely that the company would regain all the money, Kommersant quoted Dashyan as saying.

Repsol, Gazprom Neft, and the Federal Antimonopoly Service did not respond to requests for comment.

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