Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rosneft Lobbies Putin for State’s 20% Stake of Novorossiysk Port

Don't Miss Out —
Follow us on:

Oct. 30 (Bloomberg) -- OAO Rosneft is seeking President Vladimir Putin’s backing to buy the state’s 20 percent of Russia’s largest port operator, according to a letter obtained by Bloomberg.

OAO Novorossiysk Commercial Sea Port’s infrastructure would help the state-controlled oil producer to develop offshore resources in the Black Sea, Rosneft Chief Executive Officer Igor Sechin wrote in an Oct. 10 letter to Putin. Rosneft’s press service declined to comment on the letter. The government plans to divest its stake this year as part of an asset-sale program.

A third of Russia’s most valuable export, crude, flows through Novorossiysk’s ports on the Black and Baltic seas. Rosneft expressed interest in the port company last year, with backing at the time from OAO Transneft, the state oil pipeline operator. Tensions flared between Rosneft and Transneft this year over a pipeline extension to China before the companies agreed on financing the project this month.

“The proposed deal meets neither the government’s strategic goals nor the ports’ development program,” Irina Stupachenko, an Otkritie Capital analyst, said in an e-mailed note. “We do not believe that the government will support Sechin’s proposal.”

Transneft had turned to Rosneft as an ally as a dispute brewed with businessman Ziyavudin Magomedov’s Summa Group, its co-owner of a 50.1 percent stake in Novorossiysk, over how the port operator was run. The pipeline monopoly dropped demands for a management change in February after the partners agreed to elect Transneft First Vice President Maxim Grishanin as board chairman at Novorossiysk.

Transneft affiliates bought an additional 10 percent of the port operator on the market this month, adding to the stake it owns jointly with Summa Group, Igor Dyomin, the pipeline monopoly’s spokesman, said today by phone, confirming a report in Vedomosti newspaper on Oct. 17. The partners haven’t publicly disclosed how much they each control.

Novorossiysk owns the port by the same name on the Black Sea and the Baltic Sea port of Primorsk, Russia’s largest oil export terminal.

To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.