Media comments: for $ 2 billion, Conocophillips "has found faith in Russia"

On Thursday, the first lanes of almost all Russian newspapers are devoted to the largest privatization transaction of modern Russia - the purchase of the Conocophillips of the LUKOIL promotions for $ 2 billion. They paid attention to this long -expected deal and foreign newspapers.

The Financial Times , which is published by Inopressa , notes that the investment of $ 2 billion in the Russian oil company is “the most serious manifestation of faith in Russia since the BP investment in TNCs worth $ 7 billion,” especially considering the “Yukos case”.

"BP invested the money long before the Kremlin launched an attack on the Yukos oil company last year, which caused anxiety of investors interested in Russia. As opposed to this, Conocophillips made its purchase, perfectly realizing that Yukos is on the verge of bankruptcy."

However, as Kommersant writes, Conocophillips investments were approved by Vladimir Putin, whom James Malva president of the American company introduced investments in the Russian oil industry in July. So the management of ConoCo at the highest level received guarantees that its investments would not be lost. And Lukoil gained confidence that the fate of Yukos would not befall the company.

Under the terms of the transaction, Conocophillips buys 7.6% of Lukoil shares belonging to the state and plans to increase its share to 10% by the end of the year, and subsequently to the maximum possible 20% in order to include Lukoil’s reserves in their reports.

The American oil company, in addition, invests $ 370 million in a joint venture for the development of the Timan-Pechora deposit in the north of Russia. This project will require another $ 4 billion for its completion over the next ten years.

This transaction clearly demonstrates that any major transaction in Russia, especially if it comes to natural resources, should be supported in the Kremlin. LUKOIL Vice President Leonid Fedun directly stated: "In such a country as Russia, all issues related to investments should be resolved with political support. This is a centralized state."

The commentary of the anonymous representative of the Kremlin, who said FT: "The state is now considering itself the owner of the country's natural resources, which means that it is an acceptable partner for transactions of this kind."

All newspapers note that this is the first so large investment in Russia after the start of the Yukos case. Experts carefully try to say that a foreign business is again starting to "believe in Russia", but they doubt that the outflow of capital from the country will be sharply reduced. And the “News Time” generally believes that Conocophillips “seeks not so much to develop together with Lukoil, for example, Timano-Pechora, how much thanks to Vagit Alekperov to break through to Iraq.” The parties yesterday reported that in the project of mastering the huge West Kurna-2 deposit, Americans will receive a share of 17.5% (Lukoil now owns 68%).

Interesting details about the negotiations of the two companies that lasted more than two years told Vedomosti . All this time, the parties carefully protected their confidentiality. It was for these considerations that the consultant was not hired by a large investment bank, but Compass Advisers LLP - an investment boutique in the United States. And a source close to the transaction says that in the official correspondence between companies for conspiracy, the entire project was called the Buvol, Lukoil - Tiger, and Conocophillips - Panther. But these tricks were in vain. In the summer, information about the project leaked to the market in the general features, and after Vladimir Putin talked with the leaders of both companies and approved the investments of the Americans in Russia, market rumors grew into confidence, and the unconditional favorite of yesterday’s trading was Conocophillips.