UK blocks €5bn Russian North Sea deal
The UK has blocked a €5bn deal by Russian billionaire Mikhail Fridman to acquire gas fields in the North Sea, as even private Russian companies with no connection to Russian president Vladimir Putin’s inner circle fall victim to the chill between Moscow and the west.
The government’s move shows that the impact of US and EU sanctions, which have targeted Russia’s energy, banking and defence industries, is spreading beyond Kremlin-controlled groups to oligarchs with close western ties.
Mr Fridman’s attempt to buy RWE Dea, the oil and gas arm of German utility RWE, could be subject to big delays or might even collapse, according to people close to the deal. BASF, the German chemicals company, is a potential alternative acquirer of the RWE assets, analysts say.
The oligarch attracted some of the most high-profile names in the energy business to advise him on his oil investments, including former BP chief executive Lord Browne and Jim Hackett, the former boss of US independent Anadarko.
The RWE transaction was cleared by the German government in August. But RWE said last month that it was still waiting for a “comfort letter” – in effect a statement of no objections – from the UK government, adding that it was “uncertain” whether the letter would be issued. Such a letter is required when a British oil and gas production licence is transferred to a new owner.
Source: FT- UK blocks €5bn Russian North Sea deal
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