Rosneft and BP today announced that they have signed a binding agreement to dissolve the existing refining JV Ruhr Oel GmbH (ROG) as they move toward completion of the previously announced restructuring of the two companies’ German refining and petrochemical venture. The agreement was approved by the Rosneft Board of Directors at the meeting on December 31, 2015 and by the Board of BP Europa SE on 14 January, 2016.

When the restructuring is completed later this year, Rosneft will become a direct shareholder and increase its shareholding in the Bayernoil refinery from 12.5% to 25%; the MiRO refinery from 12% to 24%; and the PCK refinery – from 35.42% to 54.17% In exchange, BP will consolidate 100% of the equity of the Gelsenkirchen refinery and the solvent production facility DHC Solvent Chemie.

In December of 2015, Rosneft received approval of the deal from the Bundeskartellamt (German Anti-Trust Authority). European Commission approval of the deal is expected to be granted in first quarter of 2016.

The restructuring of Ruhr Oel GmbH will enable Rosneft and BP to re-focus their refining and petrochemicals strategies in Germany. The agreement demonstrates Rosneft’s shift to a fundamentally new level of operations in Western Europe and confirms the Company’s commitment to the creation of additional value for its shareholders.

Sole ownership of the Gelsenkirchen refinery will re-focus BP’s refining business in the heart of Europe and is in line with the company’s drive for greater simplification and efficiency.

The parties reconfirmed their desire to provide maximum support to each other during the restructuring process.