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According to official representative of “Transneft” Ygor Demin, this is performing under the program of deoffshorization of Russian economy.

Russia will pay an additional issue of ordinary shares of “Transneft” by investing in its capital 100% of shares of two companies, one of which owns the share in Caspian pipeline consortium (CPC).

The corresponding decree signed by the President of Russian Federation Vladimir Putin is published on an official website of legal information. According to the document, the capital of “Transneft” gets 100% of “CPC Company” shares. According to information on CPC website, this company owns 7% of the consortium. Besides, by the decree, in the capital of “Transneft” will be contributed 100% of “CPC Investments Company”. Both companies are registered on Cayman Islands.

After the capital increase “Transneft” will get the right to carry out additional issue of preferred shares while maintaining the share of Russian Federation not less than 75% + one share, said in the document.

As reported to TASS the official representative of the company Ygor Demin, “Transneft” isn’t planning to issue preferred shares. With that he added, that in order to carrying out additional issue of preferred shares they will need a decision of shareholders and agreement of the owners of 3/4 shares.

According to “Transneft”, fund UCP, created in 2007 by Iliya Sherbovitch, owns 1,1 million preferred shares of the company out of 1,5 million that are in use at the market.

“Transneft” is a beneficial owner of federally owned 24% shares of CJSC “CPC-R” and OJSC “CPC-K” and according to the contract from December,9 2009 is a beneficial owner of federally owned 100% shares of “CPC Company” and “CPC Investments Company” (own 7% shares of CJSC “CPC-R” and OJSC “CPC-K”).

Demin clearified that transference from trust to the ownership is carried out under the program of deoffshorization of Russian economy.

The shareholders of CPC include Russian Federation (presented by “Transneft” – 24% and “CPC company” – 7%) – 31%; Republic of Kazakhstan (presented by “Kazmunaygaz” – 19% and Kazakhstan Pipeline Ventures LLC - 1,75%) – 20,75%; Chevron Caspian Pipeline Consortium Company - 15%; LUKARCO B.V. - 12,5%; Mobil Caspian Pipeline Company - 7,5%; Rosneft-Shell Caspian Ventures Limited - 7,5%; BG Overseas Holding Limited - 2%; Eni International N.A. N.V. - 2% and Oryx Caspian Pipeline LLC - 1.

CPC is a pipeline that connects Kazakhstan with the sea port around Novorossiysk, where oil is taken aboard on tankers for the further shipping to global markets. Pipeline length that connected oil deposit of Western Kazakhstan with the sea terminal in Novorossiysk is 1,511 thousand kilometers.

Sea terminal of CPC is equipped by single-point mooring, which allow to load tankers safely at a considerable distance from the shore, as well as at adverse weather conditions. “Transneft” is a subject of natural monopoly, 100% of voting shares are federal property. 

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