The deal between AFK Sistema and ONGC

AFK Sistema will decide on the sale of 25% of Bashneft to India’s ONGC in 2011.

AFK Sistema expects to make up its mind to sell 25% of Bashneft to India’s ONGC in 2011. “We have made the strategic decision to sell the stake and have started negotiations with the ONGC. No talks with other partners are going on,” said the company’s CEO Mikhail Shamolin. 


He said Sistema was interested in ONGC because it has business in India. “Until things become clear on possible partnership with the Indian company, we do not intend to conduct any talks with other companies,” Mr Shamolin said. 


He also announced that his company was considering the sale of Bashkirenergo. “Sale is an option that we do not rule out,” he said, explaining that the company has constantly been receiving this kind of offers and, being an investment company, AFK “looks at everything in terms of sales”.


As for reports that Sistema eyes Tatneft, Shamolin dismissed them as rumours, noting: “If we are offered to buy Tatneft at an attractive price, we won’t turn it down. So far no such offers have come our way.”

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