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CEO of Russia’s major oil corporation agrees to buy out minority stakes

Medvedev asked Sechin if Rosneft has enough money for this
Photo ITAR-TASS/Stanislav Krasil'nikov
Photo ITAR-TASS/Stanislav Krasil'nikov

SOCHI, September 27 (Itar-Tass) - CEO of Russia’s oil industry giant OAO Rosneft, Igor Sechin, said Friday he agreed to buy out the stakes of minority shareholders.

Russian Prime Minister Dmitry Medvedev, who took the floor at a plenary session of the Sochi’2013 International Investment Forum underway in the Black Sea resort city of Sochi, addressed Sechin with the following words: “Take Rosneft for instance where the problems concerning minority shareholders of the TNK-BP oil company still exist. Is this true, Igor Vladimirovich /the second word being Sechin’s patronymic - Itar-Tass/?”

“We inherited this problem,” Sechin answered.

Medvedev said however that the Rosneft development strategies were in the hands of a different shareholder at present and this role was performed by the state as the owner of the controlling shares.

“I think we could demonstrate an instance of correct conduct and take a decision aimed at ensuring a favorable investment climate with regard to that particular company,” Medvedev said.

“It would be appropriate to buy out the shares of minority stockholders,” Medvedev told Sechin, who looked somewhat puzzled by the governmental initiative.

“Considering your concern and your decision, I think the company will be prepared to fulfill voluntarily the task you’ve set forward to us, although we don’t have the legal obligation to buy out shares,” Sechin said.

“Very shortly, the Rosneft directors will consider the buyout of minority stakes at a fair price and will take the required decision on it,” he said.

Sechin said along with it that Rosneft proposes to compute the price on the basis of the average weighted quotes of the company’s shares on security markets over the previous eighteen months.

“The premiums on quotations will stand between 20% and 30%,” he said

Medvedev asked Sechin if Rosneft has enough money for this. “The company does have money,” he answered.