Source Pravda.Ru

Rosneft confirms purchase of Severnaya Neft

Rosneft President Sergey Bogdanchikov and Andrey Vavilov, the owner of Severnaya Neft, have confirmed the information that they are completing the deal on selling a 100-percent stake in Severnaya Neft to Rosneft, representatives of the companies told RBC. The deal is for $600m.

As reported earlier, on February 11 S&P changed the forecast for the company's credit rating to negative, while leaving the B rating unchanged. However, there is a possible violation of the provisions of Rosneft's Eurobond issue.

The volume of the company's debts amounted to $990m at the beginning of 2003, which is very close to the highest permissible level of $1.25bn, according to the financial provisions of the $150m Eurobond issue at the end of 2001. According to S&P this may result in a technical default of Rosneft and the company will have to agree with its creditors on changing the provisions of the Eurobond issue.

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