Kadyrov called the attitude of the leadership of Rosneft to the Chechen...

Kadyrov called the attitude of the leadership of Rosneft to the Chechen unfair

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Ramzan Kadyrov

Photo: Denis Abramov / TASS

The head of Chechnya Ramzan Kadyrov believes that the price of the assets of “Rosneft” in the Republic is seriously overpriced. Kadyrov promised to get justice in this matter

The company “Rosneft” unjustly applies to Chechnya, said the head of the Republic Ramzan Kadyrov. Appointed by the company the price is 12.5 billion rubles for their assets in the region (51% in the “Grozneftegaz” and other property), according to him, is seriously overpriced.

“What they for 12.5 billion offer, this is ridiculous. They believe, I don’t even know,” — said Kadyrov in an interview to the channel “Russia 24”.

The oil industry of Chechnya, according to the head of the region, is currently “dead”, the oil production does not exceed 500 thousand tons per year, and “Rosneft” does not fulfill the President’s promises on the construction of oil refinery (refinery).

“In fact, if today I give voice to such questions, they will start tomorrow: “And, Kadyrov against the “Rosneft”, let him push in full”. But I defend the interests of the region and the people”, — said Kadyrov.

The head of Chechnya noted that the Republican authorities have allocated land for the construction of the refinery and created the necessary infrastructure, and the management of “Rosneft” from the site refused.

“Came a new head of “Rosneft” and froze the whole topic. Such an attitude to us is an unfair attitude, we will achieve justice,” — said Kadyrov.

The head of the Chechen Republic stressed that the CEO of “Rosneft” Igor Sechin — “big politician”, who came to the business “leadership positions”, and therefore in the Chechen Republic should be viewed as a postwar region, only building its economy.

Kadyrov also announced that he intends to discuss the development of the economy of Chechnya at a meeting with Prime Minister of Russia Dmitry Medvedev.

In December 2015, it became knownthat President of Russia Vladimir Putin supported the proposal to transfer Kadyrov Chechnya is owned by the government and controlled “Rosneft” enterprise “Chechenneftekhimprom” (CNHP). In April 2016, Kadyrov complained to Putin that, contrary to the instruction of the President, the government took the decision to transfer CNHP the region.

In turn, “Rosneft” has suggested a different scheme of transfer of the property, in which Chechnya should receive the control packet of shares of “Grozneftegas” (“daughter” of “Rosneft”, which works on the leased assets CNHP) and other property of the company in exchange for the payment of Rosneft 12.5 billion rubles.

According to the assessment made by PwC, the market price of the Chechen assets of “Rosneft” is about 11.8 billion rubles, the report also mentioned the cost in the amount of 725 million rubles for the project of a refinery in Chechnya, which was not implemented.

In early March, 2017, a source familiar with the negotiations “Rosneft” and the leadership of Chechnya, told TASSthat the parties have not reached agreement.

“The Republic has taken the time to reflect on the proposal, as it believes the valuation of the assets of 12.5 billion rubles is too high,” — said the source TASS.

Later it became known that the management of “Rosneft” recognised unprofitable creation of Grozny oil refinery with a capacity of 1 million tons of oil per year, construction of which insist the authorities of the Republic, and proposes instead to build a bitumen plant.

March 28, Rosneft won the auction to develop in Chechnya, two oil and gas fields.