Gazprom Neft deal with Eni finalized

MOSCOW, April 7 (UPI) -- Russian gas monopoly Gazprom has paid $4.2 billion to Italy's Eni for its 20 percent share in the oil producing firm Gazprom Neft, Eni said Tuesday.

The board of directors at Gazprom had given their preliminary approval in March for the repurchase of a 20 percent stake in Gazprom Neft from Italian companies.

Beyond the $40 billion acquisition, another $1.5 billion would go to Eni and Enel for a controlling stake in SeverEnergia, the Russian venture with the Italian firms.

Alexei Miller, the chief of Gazprom, and Eni's Paolo Scaroni signed the deal Tuesday in Moscow, RIA Novosti reports.

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

"We purchased these shares at an auction for $3.7 billion," Scaroni said. "We had to repay a loan for two years at 9.4 percent per annum and pay dividends."

Prior to the deal, Gazprom held a 77.6 percent stake in Gazprom Neft, the fifth-largest oil company in Russia.