London: Friedman to sell assets in the North Sea – BBC Russian

• 21 April 2015

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British authorities gave Mikhail Fridman six months to ensure that resell the assets in the North Sea

The Department of Energy said Britain that controlled by Russian businessman Mikhail Fridman LetterOne companies have six months to ensure that sell oil and gas fields in the North Sea. Otherwise, the agency has threatened to revoke the license for development.

LetterOne acquired the assets in March, but has not received from the British authorities is necessary in such cases, a formal confirmation of the absence of claims to the transaction (so-called comfort letter).

The reason for the denial of such a letter served as explained in the government fears that the new sanctions against Russia and Russian businessmen may affect the business and Mikhail Fridman.

In this case, the mining would have stopped, but it carries risks for UK consumers: from the North Sea gas is 3-5% of the UK gas market .

“This decision [to request the sale of assets] was made after a comprehensive assessment of the situation and intergovernmental consultations,” – said in a statement Energy Minister Ed Davey.

Among LetterOne (it manages proceeds Alfa Group Mikhail Fridman after the sale of 25% of TNK-BP), refrain from commenting. Financial Times earlier reported that Friedman is ready to sue the British authorities, if they oppose the execution of the transaction.

The fields of national importance

Technically, oil and gas fields in the North Sea owned by Dea. Previously it controlled the German RWE. Therefore, the acquisition structures Mikhail Fridman these fields look like at RWE purchase of its assets.

The deal should be closed in the last year, but because of the position of the British authorities, denied the comfort letter, the signing was delayed . Had to change, and conditions of sale.

The fields in the North Sea cover 3-5% of the demand in the British gas

Initially, the cost are estimated at 5.1 billion euros, but eventually RWE made a discount of 100 million euros. In addition, the agreement included a condition under which the German company is obliged to repurchase the asset if the business structure Mikhail Fridman really fall under the anti-Russian sanctions.

Source Reuters, familiar with the situation said that the approval of personally opposed the deal, Prime Minister David Cameron, who last month allegedly reported the situation.

“The whole essence of the case is to protect the assets of national importance,” – said the unnamed official. He added that the government is no doubt that the company will be able to LetterOne six months profitable to resell the assets.

However, given the drop in prices for oil and gas, as well as the scale of investment that is required to direct the development of the fields in the North Sea resale process is not so easy.

Michael Friedman is co-owner and chairman of the supervisory board of the consortium “Alpha-Group”. According to Forbes, he has a personal fortune of 14.6 billion dollars and occupies 68 place in the list of the richest people in the world.