Chelsea boss denies oil rival buy-up

13 April 2012

SIBNEFT, the Russian oil giant controlled by Chelsea owner Roman Abramovich, has denied having plans to buy AIM-listed Sibir Energy on the cheap after a deal between them turned sour.

Sibir shares were suspended last month amid claims that the British company faced a loss of £100 million on a joint Siberian venture, called Sibneft-Yugra.

Sibir's 22.5% stake in the venture is believed to have been all but wiped out by a mysterious issue of new shares. Sibir is still trying to find out what happened, and whether anything from its investment can be salvaged.

Halted at 28p, Sibir shares are set to fall sharply when trading resumes.

Abramovich has liquidated huge investments in Russia since a Kremlin-inspired crackdown on the country's business elite. But Sibneft spokesman John Mann insisted: 'Sibneft's shareholding in the Sibneft-Yugra joint venture remains 50%.' Mann said he 'hadn't heard' of plans for Sibneft to buy Sibir.

Sibir is not the only British company finding it hard going in Russia. BP is resisting attempts by partner TNK to rewrite the terms of an £8 billion deal.

TNK is due to receive £3.75 billion in BP shares over the next three years. But TNK now wants cash upfront.

Meanwhile, Russia's leading financial watchdog is flying to London to seek the return of up to £230 million allegedly stolen from the country's army.

Former secret service boss Sergei Stepashin, head of the Russian audit chamber, believes the money has been stashed in a London bank.

Sources in Moscow indicate that the money is in an account belonging to United Energy International at NatWest's branch at 208 Piccadilly, London.

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