Italy's Pirelli inks retail, production deals with Russia's Rosneft

MILAN Sat May 24, 2014 8:04am EDT

MILAN May 24 (Reuters) - Italian tyremaker Pirelli has agreed with Rosneft to open more than 200 retail outlets at the Russian oil group's filling stations and cooperate in synthetic rubber production, Pirelli said in a statement on Saturday.

Pirelli struck a deal with Rosneft in March that made the oil major the group's largest shareholder, gaining in exchange the chance to exploit the Russian company's big gas station network to sell tyres.

Earlier this month, Pirelli said its deal with Rosneft would not be impacted by Western sanctions on Russia following its annexation of Ukraine.

Rosneft's head, Igor Sechin, is one of the individuals subject to sanctions by the United States and the European Union.

Under the terms of the latest agreement between the two companies, at least 60 retail outlets selling Pirelli-branded products will open in 2014 and 2015, and the remainder by 2019.

The synthetic rubber will be produced in Nakhodka, a coastal town near Vladivostok in Russia's far east.

Pirelli said it was interested in a long-term supply agreement for the rubber produced in Nakhodka. (Reporting by Danilo Masoni; Editing by Sophie Hares)

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