Identifier
Created
Classification
Origin
04BRATISLAVA1014
2004-11-08 14:19:00
UNCLASSIFIED
Embassy Bratislava
Cable title:  

SLOVAKS SEEK TO REPURCHASE TRANSPETROL FROM YUKOS

Tags:  ENRG EPET LO PREL 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS BRATISLAVA 001014 

SIPDIS


TREASURY FOR ERIC MEYER AND BRIAN COX
USDOC FOR 4232/ITA/MAC/EUR/JBURGESS AND MWILSON
USDOE FOR IA-42 ROBERT PRICE

E.O. 12958: N/A
TAGS: ENRG EPET LO PREL
SUBJECT: SLOVAKS SEEK TO REPURCHASE TRANSPETROL FROM YUKOS

REF: WARSAW 04253

UNCLAS BRATISLAVA 001014

SIPDIS


TREASURY FOR ERIC MEYER AND BRIAN COX
USDOC FOR 4232/ITA/MAC/EUR/JBURGESS AND MWILSON
USDOE FOR IA-42 ROBERT PRICE

E.O. 12958: N/A
TAGS: ENRG EPET LO PREL
SUBJECT: SLOVAKS SEEK TO REPURCHASE TRANSPETROL FROM YUKOS

REF: WARSAW 04253


1. Summary. Three years after selling Transpetrol, the
operator of the Slovak portion of the Druzhba pipeline, to
Yukos, the GOS will attempt to repurchase the company.
Citing instability at Yukos due to its legal problems with
the GOR, Slovak Minister of Economy Pavol Rusko announced
that the GOS had sent a letter to Russian officials
expressing interest in repurchasing the company. The GOS
would probably resell Transpetrol to another strategic
investor. What this development could mean for the future of
the Odessa-Brody pipeline is still unclear. End summary.


2. The Slovak press agency SITA reported that, at a November
8 conference, Rusko announced the GOS's efforts to repurchase
Transpetrol. He added that he expected that the GOR would be
interested in selling the company. Rusko explained that
Yukos' planned extraordinary shareholders meeting on December
20 could lead to a decision to liquidate the company or send
it into bankruptcy. He added that "we consider the situation
a Yukos to be serious, thus our partnership is unstable.
Slovakia will do everything possible to get back ownership of
Transpetrol." He outlined a plan to conclude negotiations
with the GOR within three months and complete the sale by the
end of 2005.


3. The GOS sold 49 percent of Transpetrol, plus management
rights, to Yukos in January 2002 for approximately USD 74
million. Rusko said he thought a possible repurchase price
would be roughly the same, and added that the GOS has the
money available to cover it. He said the GOS would likely
resell the company to another strategic investor and noted
that he already had a list of potential buyers, although he
failed to elaborate. Rusko said another possibility is that
the GOS would simply act as an agent for the GOR in directly
selling Transpetrol from Yukos to a new buyer.


4. Comment. Recently, Rusko has used the media to express
what many feel are exaggerated opinions on business-related
subjects. However, if ownership of Transpetrol were to
change hands it could possibly affect to moribund
Odessa-Brody pipeline project designed to carry Caspian oil
to central European markets by opening up the Slovak portion
of the Druzhba pipeline to carry oil the final distance
across Slovak territory. Post will follow up with the
Ministry of Economy and report on developments.
WEISER


NNNN