Gazprom to reacquire Gazprom Neft shares

MOSCOW, March 25 (UPI) -- The board of directors at Russian gas giant Gazprom gave preliminary approval for the repurchase of a 20-percent stake in Gazprom Neft from Italian companies.

Gazprom may pay Italy's ENI more than $40 billion for its 20-percent share in Gazprom Neft, the fifth-largest oil company in Russia, and another $1.5 billion to ENI and Enel for a controlling stake in SeverEnergia, the Russian venture with the Italian firms, RIA Novosti reports, citing the Russian-language Vedomosti newspaper.

Russian state banks Gazprombank and Sberbank, along with the Russian Agricultural Bank, have stated their interest in providing Gazprom with the necessary loans for the acquisition.

ENI and Enel acquired the stake in Gazprom Neft in the wake of the demise of oil giant Yukos, which collapsed as founder Mikhail Khodorkovsky was convicted of tax evasion and fraud.

Gazprom currently holds 77.6 percent in Gazprom Neft. The board of directors at the energy monopoly offered its preliminary consent to the acquisition.

Gazprom may make the deal official in April.