The Clinton administration has blocked $498 million in US Export-Import Bank loan guarantees for Russia's Tyumen Oil Co.
Tyumen-half-owned by the Russian government-bought Chernogor- neft, a former Sidanko subsidiary, for $176 million at a bankruptcy auction in November. But Chernogorneft owners and the European Bank for Reconstruction & Development claimed there were irregularities in the bankruptcy process. And BP Amoco PLC, which owns 10% of Sidanko, had complained to US officials.
US Sec. of State Madeleine Albright had warned the Ex-Im Bank board that the loan would not be in the US interest. When the independent agency did not defer action, she invoked a US law that allows the state department to block Ex-Im Bank loans that would not "clearly and importantly advance US policy in such areas as international terrorism, nuclear proliferation, environmental protection, and human rights."
The Clinton administration has complained about the Russian military campaign in Chechnya and protection for US companies' investments in Russia (see Editorial, p. 17).
Ex-Im Bank said the guarantees were for a $295 million loan to Halliburton Co., Dallas, to help Tyumen develop an oil field and a $203 million credit for ABB Lummus Global Ltd. to upgrade a refinery.
In a related development, the principal shareholders of Tyumen (Alfa Group and Access/Renova Group) responded to the charges of irregularities in bankruptcy proceedings against Sidanko by reaching an agreement with the principal shareholders of Sidanko (BP Amoco, Interros, and Kantupan Holdings). As part of the agreement, Chernogorneft will be transferred debt-free to the full ownership and control of Sidanko.
Sidanko shareholders plan to implement an Amicable Settlement Agreement immediately in order to release the firm's holding company from bankruptcy, according to BP Amoco.
BP Amoco says it will retain its 10% ownership of Sidanko and will continue to provide senior management control to the holding company and its subsidiaries. Interros, Kantupan Holdings, and minority shareholders will together hold a 65% stake in Sidanko. Alfa and Access/Renova will jointly acquire a 25%-plus-one share interest in the company.
Sidanko and Tyumen have also agreed to jointly evaluate the long-term operation and development of Samotlor oil field in Western Siberia through a joint venture. Operation of Samotlor is currently divided between Cherno- gorneft and a subsidiary of the Tyumen. BP Amoco will provide technical assistance on the project.
BP Amoco Group Vice-Pres. Ralph Alexander said, "This agreement significantly strengthens Sidanko...and fully reverses the adverse consequences of recent bankruptcy proceedings against Chernogorneft. We believe this agreement protects the interests of creditors and shareholders."
