Russian oil giant Rosneft has closed a deal to buy Bishkek Oil Company, a leading trader in petroleum products in Kyrgyzstan.
Rosneft said in a press release that a framework agreement on the deal was signed by the head of Rosneft, Igor Sechin, and general director of the Kyrgyz company, Aleksandr Niyazov, on February 19, 2014.
The Russian giant didn't disclose the value of 100% in the company, which runs an extensive network of petrol stations in Bishkek. "The closure of the deal has enabled Rosneft to take strong positions on the promising petroleum products market in Kyrgyzstan and to expand channels of selling products with high valued added," Rosneft said.
Rosneft follows Gazprom in entering the Kyrgyz market since the country announced its intention to join the Russia-led Customs Union (CU) which will be transformed into the Eurasian Economic Union (EEU) in 2015. Kyrgyzstan is expected to join the CU by the end of this year or the EEU next year.
Gazprom concluded the deal to buy the Kyrgyzgas gas-distribution company in April and promised "uninterrupted" supplies of gas to the country. However, it has not yet been able to supply gas to the country's south after Uzbekistan suspended gas deliveries following the takeover. Gazprom has now pledged to cut the price of gas for Kyrgyzstan by more than a third to $165 per 1,000 cubic metres (cm). Kazakhstan supplies gas to Kyrgyzstan's north at $224 per 1,000cm, while Uzbekistan used to sell gas at $290 per 1,000cm.
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