Rosneft Offers Buyback to Shareholders Voting Against China Discount

By The Moscow Times

March 22, 2012

Russia's largest oil company Rosneft will ask shareholders to approve a discount of $1.5 per barrel on oil sales to China at a meeting next month, RIA-Novosti reported Wednesday, citing company documents.

Rosneft will offer to buy back shares from shareholders who vote against the measure.

The oil giant promised the price concession to China last month to resolve a long-running feud. Earlier this month, State Duma deputy Nikolai Komomeitsyev asked President Dmitry Medvedev and Prosecutor General Yury Chaika to investigate Russia's oil contracts with China, after media reports said contract revisions could cost Russia around $3 billion, RIA-Novosti reported.

On Wednesday, ratings agency Standard & Poor's confirmed Rosneft's long-term rating of BBB- and changed the prognosis from positive to stable, saying that despite high oil prices, the company's operating cash flow is expected to be negative this year due to capital investment costs.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue