Sanors falls in price because of sanctions and devaluation

Rosneft, that recently froze a number of transactions, has just closed the deal on the purchase of the petrochemical holding company Sanors, announced almost a year ago. In 2014, the value of the asset was valued at $1 billion, but according to the Kommersant, because of the devaluation of the ruble, the economic crisis and sanctions against Rosneft the amount was reduced. The state-owned company can also reduce the amount of investment into Sanors, which is estimated at $8 billion.

Rosneft has reported the closing of the transaction on acquisition of 100% of the holding company Sanors’ shares (Novokuibyshev petrochemical company) from SANORS Holding Limited. The companies announced the agreement at the St. Petersburg Economic Forum in May 2014. Initially the transaction was planned to be closed before the end of September, and then the term was extended until the end of the year, and then was postponed to the first quarter. The formal reason was waiting for permission from regulators. But sources of the Kommersant have repeatedly said that Rosneft was ready to freeze the deal or even abandon it. This has already happened with the purchase of North Atlantic Drilling, the trading assets of Morgan Stanley, the creation of a joint venture with Alltech Dmitry Bosova for building of an LNG plant Pechora LNG. The Kommersant’s interlocutors call the closing of the transaction on Sanors a surprise (all permits were obtained), without explaining the details. Rosneft and Sanors don’t comment on the situation.