Source Pravda.Ru

Sibir Energy cancels negotiations with Tatneft and Corus Holdings Ltd.

Sibir Energy has stopped negotiations with Tatneft and Corus Holdings Ltd.on selling its 33 percent block of shares, the press service of SibirEnergy told RosBusinessConsulting. The alliance of Tatneft and CorusHoldings Ltd. failed to agree with Sibir Energy on the level of controlover its assets. "Both parties were trying to come to a compromise,however, despite all efforts, it has not been found", the executivedirector of Sibir Energy declared.The deal envisaged the allocation of a $120m credit by the alliance inorder to create the Moscow Oil and Gas Company, which is being formed bySibir Energy in cooperation with the Moscow government. The alliance wasalso to purchase additional issues of shares in Sibir Energy totaling$240m. Sibir Energy took a credit from the Bank of Moscow to repurchaseshares of the Moscow Oil Refinery and Mosnefteproduct, whose assets were tobe included in the Moscow Oil and Gas Company. It is expected that theMoscow Oil and Gas Company will be formally created in the next four weeks.The Moscow government's contribution to this project is shares in theMoscow oil Refinery and Mosnefteproduct. Sibir Energy's contribution is astake in the joint venture Sibneft-Yugra..

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&to=http://www.tatneftjsc.ru/' target=_blank>TATNEFT

&to=http://www.sibirenergy.com/' target=_blank>Sibir Energy

&to=http://www.corushome.com/default.htm' target=_blank>Corus Holdings