Rosneft and ChemChina in early September signed a Memorandum of understanding on cooperation on the project VNHK.
MOSCOW, 2 Nov.Prime. The Federal Antimonopoly service of the Russian Federation will analyse the acquisition of China national chemical Corporation (China National Chemical Corporation ChemChina) share in the project of East petrochemical company (VNHK), announced Deputy head of the FAS Andrey Tsyganov.
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.
Answering a question of journalists, whether this will require the approval of the transaction of governmental Commission on foreign investments, Tsyganov said, “It is necessary to analyze fully. It all depends on the structure of the transaction. Sometimes malformed structure of the transaction and immediately dragged her to the government Commission”.
Head of Department for control over foreign investments of FAS Russia Armen Yang September 3, 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.