Acquisition of 10% stake in SIBUR is named 2016 largest investment of China in Russia


The “Silk Road Fund” (SRF) named the acquisition of 10% of SIBUR – the largest investment of China in the oil and gas industry of Russia in 2016. A previous deal to buy 9.9% of “Yamal LNG” which is building an LNG plant on the Yamal Peninsula costed the Fund €1,087 billion.

The company did not disclose the transaction amount, as previously reported neither did “SIBUR” in its release about the sale of shares on December 14th. The agreement was signed in Beijing with the participation of Chairman of the Board of Directors and the principal owner of “SIBUR” Leonid Michelson (owns about 43,08%), CEO of SIBUR, Dmitry Konov and the President of SRF, Wang Yanji.

“This transaction is the largest investment of China in Russia in 2016 in accordance with the Russian development strategy of the Far East. It will be a new contribution of SRF in China-Russia energy cooperation, and even wider, full-fledged bilateral strategic partnership”, — stated in the Fund’s message.

In December 2015 another Chinese company Sinopec purchased 10% of SIBUR. The head of the Federal Antimonopoly Service Igor Artemyev said that the transaction amounted to $1,338 billion (€1,281 billion). In November 2016, after signing a framework agreement between SIBUR and SRF Mr. Michelson answering a question of journalists on the conformity of the amount of the second deal with Chinese investors to a deal with Sinopec, said, “You are thinking correctly.”

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