LetterOne Says It Won’t Take Wintershall Dea’s Russian Assets From BASF


FRANKFURT, May 4 (Reuters) – LetterOne will not take over Wintershall Dea’s Russian assets and has not held discussions with co-investor BASF (BASFn.DE) on such a transaction, a spokesman for the group said. of investment.

A person familiar with the matter told Reuters earlier that BASF was considering transferring the Russian assets of its oil and gas business Wintershall Dea to partner LetterOne. Read more

“We have had no discussions with BASF on this matter and do not intend to take over any Russian assets,” the spokesperson said.

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The unloading of assets would have advanced the German chemicals giant’s efforts to divest itself of business in Russia and could have allowed BASF to reinvigorate plans for an initial public offering of the remaining energy business.

He had faced opposition from LetterOne this year against a listing from Wintershall Dea. Read more

BASF said last week that it had for now given up separately listing Wintershall Dea due to exposure of the joint venture in Russia, which is under Western sanctions for its invasion of Ukraine.

BASF said at the time that it was still determined in principle to get out of the oil and gas business. It is also set to end the company’s remaining business activities in Russia by early July, excluding products for food production. Read more

BASF declined to comment on LetterOne’s statement.

Wintershall, which gets about half of its oil and gas production from Russia, deferred to BASF on that, when asked to comment.

BASF’s considerations on an asset transfer were first reported by Bloomberg.

The German group has a 72.7% stake in Wintershall Dea and the rest is held by Letter One. The Russian investors behind LetterOne, Mikhail Fridman and Petr Aven, have resigned from the board of the investment firm after the European Union imposed sanctions on them.

Billionaire Fridman said in a statement last month that the war in Ukraine was a tragedy and must end. Read more

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Reporting by Ludwig Burger; Editing by Emelia Sithole-Matarise, Kirsten Donovan

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