Russia hits back hard against US – Rosneft abandons transaction with Morgan Stanley

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Russia’s Rosneft abandons transaction with Morgan Stanley

Russia’s oil giant, Rosneft, has announced that it will scrap a major business deal with American bank, Morgan Stanley, as the institution faces problems in regulatory clearances.

The major oil company announced Sunday that it has failed to win the needed regulatory approval for completing the purchase of oil trading business from Morgan Stanley.

The company, which seems to be affected by US sanctions over Russia’s alleged involvement in Ukraine crisis, said it will continue to cooperate with the US bank in other areas.

Morgan Stanley also issued a statement saying that it will now look for other options to protect the interests of “shareholders, clients and employees,” working in the oil trading business.

The deal, signed in late 2013, allowed Rosneft to buy Morgan Stanley’s Global Oil Merchanting unit. The big transaction included a dispersed international network of Morgan Stanley’s oil facilities, equipment and personnel.

Approximately 100 front-office executives in the United States, the UK and Singapore, were supposed to move to Rosneft Group as part of the deal.

One of the biggest oil companies in the world in terms of production, Rosneft seems to be affected by US sanctions more than what was anticipated.

The company is managed by Igor Sechin, who is believed to be very close to Russia’s President Vladimir Putin.

Sechin, along with a number of other high-profile figures, was placed on US sanctions list after Ukraine’s Crimea voted in March to join the Russian Federation.

Rosneft denies that the sanctions have had any tangible impact on its business activities.

Source: PTV

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