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15 Oct, 2010 13:29

Rosneft buys German refining stake from PDVSA as Chavez visit strengthens ties

Rosneft has signed a deal with Petroleos de Venezuela to acquire its 50% stake in Germany's Ruhr Oel for $1.6 billion dollars.

The purchase was signed at a meeting between Russian President Dmitry Medvedev and Venezuelan counterpart Hugo Chavez. Rosneft President Eduard Khudainatov, says the purchase will help open up European markets.

“This transaction is consistent with our strategy to expand our presence with high quality assets in key international markets. As a result of this acquisition, 18% of Rosneft’s refining capacity will be located in the heart of industrialized Europe. Furthermore, our resource base will strengthen Ruhr Oel’s competitive position, while our growing refining and petrochemical businesses will benefit from joint ownership via Ruhr Oel of leading technologies and management practices.”

Energy ties were a key part of the talks between the Russian and Venezuelan leaders Russian and Venezuelan energy ministers also expressing support for TNK-BP's acquisition of BP assets in Venezuela, and a possible deal on joint construction of an LNG facility by Petroleos de Venezuela and Gazprom.

Business RT spoke with senior oil and gas analyst at Metropol IFC, Aleksandr Nazarov, about Russian – Venezuelan energy ties.