Rosneft announces that it has agreed to sell via its subsidiary Neft-Aktiv 50% of OJSC Tomskneft to Vnesheconombank (VEB).
Rosneft has agreed to sell 50% of Tomskneft to Vnesheconombank (VEB) in accordance with an agreement, the latter of which contemplates rotation of key management positions and joint decision taking on key development issues, and subject to receipt of required corporate approvals. Upon completion of the transaction, Rosneft expects to account for Tomskneft on an equity basis in its US GAAP financial statements.
Proceeds from the sale of 50% of Tomskneft enable Rosneft to complete recent announced acquisitions without raising any further debt. Rosneft will continue to reduce debt through integration of recently acquired assets, improved operating performance, enhanced downstream margins, and potential asset sales. The company is targeting a reduction in leverage to 1x Debt/EBITDA and less than 30% gearing by 2010.