Rosneft-BP agreement, memorandum with AAR on TNK-BP buy are binding
MOSCOW. Oct 31 (Interfax) - The agreement between OJSC Rosneft and BP and the memorandum with the AAR consortium (Alfa Group, Access Industries, and Renova) on the purchase of TNK-BP are binding, Rosneft President Igor Sechin has told the press.
"All the agreements we have are binding," Sechin said.
Sechin said he does not see any risk that the deal will be broken by any of the parties involved. "I do not believe that any of the parties can violate the agreements," he said.
Whatever happens with the TNK-BP deal, the Rosneft shareholders will be the winners, Sechin said. "Nothing bad will happen to Rosneft in any event. Our shareholders are protected and I don't see any risks to our shareholders no matter how the situation develops," he said.
Rosneft has no obligations to minority TNK-BP shareholders, he added.
"This deal is being done in market fashion with account taken of all laws and standards. Rosneft has no obligations to TNK-BP minority shareholders," he said.
"If they want to make proposals, let them. We will discuss them," Sechin said.
The purchase of TNK-BP will not be financed solely with borrowed funds, he said. "Not everything will be done with [borrowed] resources. There will be other accompanying financial elements," he said.
Rosneft has inked an agreement with BP to buy the latter's 50% stake in TNK-BP for $17.1 billion in cash and 12.84% of Rosneft shares. Rosneft has also signed a memorandum of intent with AAR to acquire the consortium's 50% stake in TNK-BP Limited for $28 billion in cash.
