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Tuesday, 02 December, 2008, 23:40 GMT | more >>

Lukoil says ‘conflict may affect business’


Wire services

The head of Russian oil giant Lukoil, Vagit Alekperov, was quoted as saying that tension between Russia and the West caused by the conflict in Georgia may affect Russian companies’ international projects.

The brief war, which erupted on 7 August when Russian troops repelled a Georgian attack on pro-Russian South Ossetia, caused some Western governments to accuse Moscow of occupying parts of Georgia and urge other countries to review its ties with Russia.

Vedomosti business daily yesterday quoted Alekperov as saying that the tensions might complicate the finalisation of Lukoil's recently agreed joint venture with Italy's second-largest refiner, which should give Lukoil a share in ERG's two plants in Sicily.

"One can not exclude that we might have problems. For example, getting European anti-monopoly organs' approval to buy Italian refineries in Sicily," Alekperov told Vedomosti in an interview.

Lukoil, Russia's number two oil company in which US oil giant ConocoPhillips owns a 20% stake, in June finally broke into the west European refining business by buying 49% of ERG's Mediterranean plant for €1.35 billion ($2.1 billion).

Lukoil and ERG agreed a joint venture valued at €2.75 billion to control ERG's Isab di Priolo refinery in Sicily.

Alekperov added the Russian-Georgian conflict has so far caused no problems for his company's international projects, including those in ex-Soviet Azerbaijan, which neighbours Georgia.

EU leaders met in Brussels yesterday to draft a response to Moscow's actions in Georgia, which they have called "aggressive".

Russia, which has pulled out most of its forces in line with a ceasefire deal between Russia and Georgia, says the remaining troops are peacekeepers needed to protect the separatist region from new Georgian violence.

The five-day conflict drained some $7 billion in capital outflows, spooked investors and sent Russian stocks tumbling to their lowest levels in nearly two years. The stocks have rebounded after the ceasefire agreement was signed but market spectators are nervous. Alekperov said Lukoil, having bought a share in ERG and Turkish fuel distributor Akpet, is now looking at acquisitions in Southern Europe and later in the US. He declined to elaborate on exact locations or funding required, reported Reuters.


Tuesday, 02 September, 2008, 01:19 GMT  | last updated: Tuesday, 02 September, 2008, 07:23 GMT

Lukoil chief, Vagit Alekperov: concerned about Georgian conflict repurcussions
 

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