Novatek sale 'below market price'

Gazprom CEO Alexei Miller speaks at a news conference after the shareholders meeting in Moscow, Friday, June 27, 2008. The head of Russia's state-owned gas monopoly OAO Gazprom said Friday that its ties to the government give it a huge growth potential and pledged to become the world's energy leader. Gazprom CEO Alexei Miller told the shareholders meeting that the company was in a better position to compete on the international energy markets as its links to the government help it secure the rights to develop new, strategic oil and gas reserves. (AP Photo/Mikhail Metzel)

Sale revelation: Gazprom boss Alexei Miller

Mikhail Metzel

Steve Marshall

, Steve Marshall

 10 February 2011 14:18 GMT

Russian gas monopoly Gazprom has revealed that it sold a 9.4% stake in independent producer Novatek in December for 57.46 billion roubles ($1.96 billion), about 36% below the market price at the time.

Gazprom, which sold the stake in Novatek on 20 December last year without disclosing the financial details, released information about the deal in its third-quarter financial results published today. Novatek's market value on the day of the sale was close to 90 billion roubles.

The gas monopoly, led by executive chairman Alexei Miller, said it sold the stake to Gazprombank, but granted Novatek's chief executive Leonid Mikhelson and the company's main shareholder Gennady Timchenko an option to buy the stake within a two-year period, Dow Jones reported.

Gazprom, which still owns 10% of…

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