Beijing to have shares in Sibur and Eastern Petroleum Company

After the conclusion of major contracts for the supply of raw materials, Chinese investors are ready to enter the Russian petrochemical industry. Shareholders of Sibur Leonid Michelson and Gennady Timchenko have come to an agreement on sale of about 10% of the company’s shares to the state-owned company Sinopec for slightly more than $1 billion. At the same time, Rosneft has agreed to exchange control in Eastern Petrochemical Company (VNKhK) for a stake in one of the structures of the largest Chinese chemical company ChemChina. The Kommersant’s interlocutors on the market note that in terms of sanctions the sale of shares to the Chinese becomes the most reliable way to attract money in the Russian projects.

Yesterday, Russian companies concluded the largest transactions in the history with Chinese state investors in the petrochemical and oil refining sectors. During the visit of Vladimir Putin to Beijing the Sibur’s shareholders agreed to sell a stake to the largest Chinese petrochemical company Sinopec. A source of the Kommersant, close to Sibur, specified that it would be not less than about 10%. Another source of the Kommersant says that it is "a little more than 10%". The shares are sold by Leonid Michelson (owns 50.2%) and Gennady Timchenko (15.3%); according to the Kommersant’s information, the latter sells more. The Sibur’s shareholders are also Kirill Shamalov (21.3%) and current and former management (13.2%). "The transaction won’t lead to major changes, no one will come out of the company’s capital, Leonid Michelson will remain the largest owner," – one of the Kommersant’s sources assured. The transaction will be concluded "under market conditions", and the evaluation of the company approximately corresponds to the conditions of sale of the Gennady Timchenko’s share to Kirill Shamalov in 2014 (then, according to the Kommersant’s information, the company was valued at $10 billion).