Update: Pirelli head says US sanctions will not impact Rosneft deal

ERJ staff report (TP)

Milan, Italy – Western sanctions on Russia following its “annexation” of Ukraine's Crimea have no impact on a deal between Pirelli and Russian oil major Rosneft, reported Gianluca Semeraro for Reuters.

"The timetable of the deal is confirmed, nothing has changed," Pirelli Chairman Marco Tronchetti Provera said.

Pirelli struck a deal with Rosneft in March that made the oil major the group's single largest shareholder, gaining in exchange the chance to exploit the Russian company's big gas station network to sell tires. This move is expected to boost the tire maker's expansion ambitions in that country, which currently accounts only for around five percent of its sales.

The United States last week imposed fresh sanctions on Russian firms and government officials, including Rosneft head Igor Sechin.

Update: 23 July (original story appeared on 6 May)

Rosneft issued a statement regarding being entered on the US OFAC (Office of Foreign Assets Control) Sectoral Sanctions List.

"Rosneft has no influence on either political or economic processes ongoing in Ukraine. For this reason, the above-mentioned sanctions are illegitimate and groundless," the company said.

"Rosneft is a public company traded on Russian and international exchanges. Therefore, the sanctions inflict damage upon the company shareholders, including US citizens and residents. The company is currently in the process of a legal review of the announced sanctions, and is consulting its international partners.

"The company will continue to work on the existing projects and agreements. Rosneft financial position is robust. Rosneft's operating cash flows allow us to carry on with our current projects. The company's financial position also allows us to deliver on the key indicators of our strategy and dividend policy.

"Rosneft possesses sufficient liquidity to service its debts and honor its contractual obligations. In June, for example, our Company and its shareholder, British BP, signed an oil products and oil supply agreement under which the advance payment amounted to about US$2 billion."