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Swiss company allowed to buy Transneft’s subsidiary with assets in Ukraine

For several years the Ukrainian authorities have contested Transneft's right of property for PrikarpatZapadtrans as well as the right of oil products supplied via the Ukrainian pipeline

© ITAR-TASS/Yuri Smityuk

MOSCOW, October 19. /TASS/. Russia’s Federal Antimonopoly Service (FAS) has permitted Switzerland’s International Trading Partners company to buy a subsidiary of Russia’s Transneft with assets in Ukraine, the regulator said in a statement on Monday.

"FAS has upheld the petition of the Swiss company," according to the statement.

In August, International Trading Partners filed a petition to FAS to acquire 100% voting shares of Yugo-Zapad Transnefteprodukt from Transneft.

Read also

Yugo-Zapad Transnefteprodukt has assets in Ukraine.

The regulator drew attention of the Swiss company to the fact that the petition should be submitted in accordance with the law on foreign investments.

According to FAS, Yugo-Zapad Transnefteprodukt is included in the register of natural monopolies in the fuel and energy complex and is a business entity of strategic importance for national defense and state security.

As a result of the proposed transaction the German company, a foreign investor, will have the right to directly dispose of 100 % of voting shares in the capital of Yugo-Zapad Transnefteprodukt, which has a strategic importance for the national defense and state security, the regulator said.

Yugo-Zapad Transnefteprodukt, JSC, has 14 branches in the territory of Russia and two subsidiaries in the neighboring countries: Unitary Enterprise Zapad-Transnefteprodukt (Belarus) and PrikarpatZapadtrans (Ukraine).

For several years the Ukrainian authorities have contested Transneft's right of property for PrikarpatZapadtrans as well as the right of oil products supplied via the Ukrainian pipeline.

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