Friday, October 28, 2016

LUKOIL responded to allegations of questionable transactions with Bashneft – RBC

Employees of LUKOIL. January 2016

Photo: Reuters/Pixstream

LUKOIL argues that “Bashneft” has no claims related to the performance of obligations under the contract with him. After the transition of “Bashneft” under control “Rosneft” the largest contract between the companies was terminated.

contracts for the supply of oil and oil products between member organizations of the LUKOIL group and “Bashneft” and joint venture “Bashneft-Polyus” concluded on market terms in accordance with the applicable laws and licensing requirements, said the press service of LUKOIL on Friday, October 28.

“, “Bashneft” has no claims related to the performance of obligations under the contract with LUKOIL”, — underlined in the message.

This statement is made “in connection with rumors about the alleged questionable trading operations between member organizations of the LUKOIL group and Bashneft, specified in the message oil company. The representative of “Rosneft”, which on 12 October acquired a controlling stake in Bashneft, at the time of publication had not responded to a request to RBC.

As reported on October 27, the new President of “Bashneft” Andrey Shishkin, scheduled for the following day after the change of the main owner of the company, October 25, informed LUKOIL that decided to terminate the contracts between the two companies. “Thank you for the development of strong business relationships and support the productive work between our companies. I suggest you consider the possibility of termination from November 1, 2016 the agreement dated July 3, 2015 for the supply of oil and sale of petroleum products,” reads the letter Shishkin addressed to Vice-President of LUKOIL Valery Subbotin (RBC got acquainted with the text of the letter).

In July 2015, Bashneft has agreed to purchase “LUKOIL-Rezervnefteprodukt” oil for loading refinery “Bashneft-UNPZ”, “Bashneft-NOVOIL and Bashneft-Ufaneftekhim”. Then the trader Litasco LUKOIL has concluded with “Bashneft” the agreement on purchase of oil products for export sales. The total amount of these contracts amounted to about 400 billion rubles. They were signed until 31 January 2017, with the possibility of extension until July 31, 2018.

the Representative of “Rosneft” then told RBC that LUKOIL agreed to terminate these contracts without penalty penalty. On Friday morning it was confirmed by the press service of LUKOIL.

the next day after the purchase of “Bashneft”, on 13 October, chief Executive officer of Rosneft Igor Sechin said that the company is “fully in control” in the new “daughter” and has begun reviewing its contracts to ensure “continuity”.

the Representative of LUKOIL refused to clarify RBC, in any publications questioned his contract with “Bashneft”. Last week, 17 October, “Novaya Gazeta” published an investigation stating that the company “Bashneft-Polyus” — a joint venture of “Bashneft” (74,9%) and LUKOIL (25.1 per cent) — “almost all oil” produced at the Trebs and Titov field in the Nenets Autonomous region, sells of the company “LUKOIL-Rezervnefteprodukt, and then she buys oil to load its own oil refinery”. And in this chain are also used intermediaries, says the publication.

the Oil fields of Trebs and Titov physically impossible to move the plants in Bashkortostan and Perm, owned by the JV partners (“Bashneft” and LUKOIL), told RBC a source close to Bashneft. Therefore, the “Bashneft-Polyus” sells that oil to LUKOIL, and then he buys West Siberian oil, which is in accordance with the license agreement is processed at the Ufa oil refinery “Bashneft” and Perm plant of LUKOIL. All transactions were checked by the audit Commission in Bashneft, which came to the conclusion that everything is done according to the law, said the interlocutor of RBC.

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