Rosneft sells Venezuelan assets to Russian state co for 9.6% own stake

MOSCOW, Mar 30 (PRIME) -- Oil major Rosneft is ceasing operations in Venezuela and selling all assets in the country to a Russian state-owned company and expects to receive own shares in the amount of 9.6% as a result of the deal, Rosneft said in a statement on March 28.

“Today, Rosneft concluded an agreement with the company 100% owned by the government of the Russian Federation, to sell all of its interest and cease participation in its Venezuelan businesses, including joint ventures of Petromonagas, Petroperija, Boqueron, Petromiranda and Petrovictoria, as well as oil-field services companies, commercial and trading operations,” the company said in the statement.

“As a result of the concluded agreement all assets and trading operations of Rosneft in Venezuela and/or connected with Venezuela will be disposed of, terminated or liquidated.”

As a result of the deal, Rosneft will receive a 9.6% share of its equity capital that will be held by a 100% subsidiary of Rosneft and accounted for as treasury stock.

A spokesperson for the Russian government confirmed that the state purchased the Venezuelan assets from Rosneft.

By selling all assets in Venezuela Rosneft fulfilled its obligations to shareholders and now has the right to rely on the U.S. regulators to fulfill their promises given publicly, that is, lifting sanctions from Rosneft’s subsidiaries, the company’s press secretary Mikhail Leontyev said.

The U.S. State Department refused to reveal its intentions regarding sanctions placed on Rosneft and said it is constantly analyzing all activities related to these sanctions.

The U.S. slapped sanctions on subsidiaries of Rosneft in February, citing cooperation with Venezuela, and ordered Rosneft to wind down transactions involving Rosneft Trading and TNK Trading by May 20.

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