Bashneft’s Mexican partner on RusPETF abandons the project

UFA, 31 July 2015. /Bashinform News Agency, Elvira Latypova/. Subsidiaries of Bashneft and Mexican Alpek companies will make a transaction, after which Bashneft will acquire the 100% stake in the joint venture - LLC RusPETF. This decision was taken at a meeting of the Bashneft Board of Directors on July 29.

As the press service of Bashneft informs, the subsidiary of the oil company - JSC United Petrochemical Company (UPC) will purchase a 49% shareholding in RusPET Holding B.V. (Netherlands) from Grupo Petrotemex (Mexico). The transaction will be done "in accordance with the directive of the Government of the Russian Federation", the report states. The amount of the contract will not exceed 4 million euros.

The joint venture was created in December 2013 for terephthalic acid and polyethylene terephthalate production in Ufa. The project was not implemented. Launching of a new petrochemical production was planned for 2017. The amount of investment was estimated at 700 million dollars.

Grupo Petrotemex decided to abandon the joint project with United Petrochemical Company and sent a notice of the sale of 49% of shares of RusPET Holding to its partner in the joint venture.

Recall that in 2013 the JSFC Sistema intended to buy UPC from Bashneft, but the deal was not completed. Sistema refused from its plans to buy UPC after the arrest of Bashneft shares followed by litigation.