Kremlin: Gazprom, Rosneft to stay separate

MOSCOW, May 17 (UPI) -- Russian officials have decided against merging the state-owned oil company Rosneft with Gazprom, in which the Kremlin holds a 38 percent interest.

Moscow will, however, raise its stake in the world's biggest natural gas company from 38 percent to 51 percent and proceed with plans to remove restrictions on foreign ownership of Gazprom, the Financial Times reported Tuesday.

The decision not to join Gazprom and Rosneft follows widespread speculation the Kremlin would merge the two as a way of consolidating control over the nation's energy sector.