ANK Bashneft' OAO Starts Consolidating Petrochemical Assets

ANK Bashneft' OAO (Bashneft) announced that on the meeting held on February 18, 2013 the Board of Directors of Bashneft made a number of decisions related to the start of consolidation of petrochemical assets within OJSC United Petrochemical Company (UPC) by absentee voting. For instance, the Board of Directors decided that Bashneft should not have stakes in LLC Tuimazinskoye gas processing plant and LLC Shkapovskoye gas processing plant anymore and approved the sale of the whole stakes in these companies to United Petrochemical Company. In the future, UPC will acquire industrial and property complexes leased by LLC Tuimazinskoye gas processing plant and LLC Shkapovskoye gas processing plant and the property complex of the bisphenol-A production unit (a raw material for producing epoxy resins and polycarbonates) from Bashneft at the market value. Bashneft’s petrochemical assets, including OJSC Ufaorgsintez, are expected to be consolidated within United Petrochemical Company during the first half of 2013 in order to develop petrochemicals production into a separate business.