PRESS: Russia’s VEB wants 10.9% in Udokan field operator

MOSCOW, Jul 14 (PRIME) -- Russia’s Vnesheconombank (VEB) plans to pay 11.4 billion rubles for a 10.878% stake in Baikal Mining Company, the operator of the Udokan copper field, business daily Kommersant reported Thursday, citing sources with knowledge of the matter.

“The mode of VEB participation was earlier agreed with the government in principle, and at the end of June, the supervisory board of the state corporation (VEB) approved the key features of the deal of the stake acquisition in the capital of the operator,” the source said.

VEB will have a put option to sell the stake, he said.

One of the VEB acquisition terms is a 5-year deposit of National Wealth Fund money amounting to VEB’s contribution to Udokan in 2016–2020. VEB also insisted that Federal Grid Company of Unified Energy Systems (FGC UES) confirm its readiness to finance energy supplies to Udokan.

(63.8531 rubles – U.S. $1)

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