The analysis of the transaction is not finished yet, all in the process, said the representative of the FAS. That said, the time frame in which it will analyse, the source did not elaborate.
MOSCOW, 9 Nov. The Federal Antimonopoly service (FAS) of Russia has launched a review of the deal to buy China national chemical Corporation (China National Chemical Corporation ChemChina) share in the project of East petrochemical company (VNHK), reported in a press-Department service.
Rosneft and ChemChina in early September signed a Memorandum of understanding on cooperation on the project VNHK. The head of “Rosneft” Igor Sechin said at the time that the size of the acquired stake in ChemChina petrochemical complex will be determined later, it will be a “serious package”, but in any case, Rosneft will retain control.
Last week the Deputy head of FAS Andrey Tsyganov informed that the service may need to analyze transactions to understand the need for its submission to the government Commission on foreign investment.
“FAS has initiated a review of the transaction. It’s not finished yet, all in the process. Waiting for documents from participants,” — said the representative of the FAS. That said, the time frame in which it will analyse, the source did not elaborate.
Head of Department for control over foreign investments of FAS Russia Armen Yang in September, said the transaction “Rosneft” and ChemChina in respect of the COMPANY may require prior approval according to the law on foreign investment — the COMPANY is a strategic company.
The project involves the construction of a petrochemical complex in Primorsky Krai petrochemical complex for the production of polymers. The project involves three parts with a total refining capacity of 24 million tons of oil and 6.8 million tons of petrochemical materials a year. The estimated cost of the project — 1,313 trillion rubles. The construction of the third phase is scheduled for completion in 2028.