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Sidanko

Sidanko also transliterated as SIDANCO (Сиданко; ) was a Russian oil company, the 8th largest company in the country by revenue in 1995.[1] Sidanko owned several oil production units, including Chernogorneft and Udmurtneft.[2]

History

Sidanko was established through the Decree No. 452 of the Russian government, published on 5 May 1994. The company counted among its assets oil extraction and processing facilities in the Udmurt Republic and in the Khanty-Mansiysk, Yamalo-Nenets, Irkutsk and Sakhalin regions.[3] It was privatized in December 1995, when the Russian government auctioned off a 51% share as part of the loans for shares scheme.[4] The 51% stake was awarded to the bank Mezhdunarodnaya Finansovaya Kompaniya in return for a $130 million loan, guaranteed by Vladimir Potanin's Uneximbank.[6] The company came under the ownership of Uneximbank, which exercised control over it through the Interros holding company.[7]

An additional 34% stake was sold by the government in September 1996,[8] in an auction designed to have Uneximbank as the only admissible bidder.[9] As with the rest of the loan for shares scheme, the Sidanko auction was considered rigged by most analysts. In November 1997 BP bought a 10% share in the company for $484 million.[2]

Sidanko entered bankruptcy proceedings in February 1999, after ZAO Beta Ekho filed to recover a $22,000 debt.[10] Beta Ekho was later revealed to be a vehicle of Mikhail Fridman's Alfa Group, which was using bankruptcy laws to avenge Fridman's exclusion by Potanin from the Svyazinvest privatization.[11] In September 1999 western creditors agreed to cede their voting rights in the company to Russian government.[12]

Tyumen Oil Company bought Sidanko's Chernogorneft unit for $176 million at a bankruptcy auction in November 1999.[13][14][15][16] In 2001 Interros sold a 44% stake in the company for $650 million.[17] BP raised its stake to 25% in 2002, paying $375 million for a 15% share.[18] In 2003 Sidanko merged with TNK, Onako and the majority of BP's oil assets in Russia to form TNK-BP.[19]

See also

  • Petroleum industry in Russia

External links

References

  1. Рейтинг крупнейших компаний России по объему реализации продукции raexpert.ru, retrieved 3 September 2017^
  2. Neela Banerjee. From Russia, With Bankruptcy; A High Cost for BP Amoco's Investment in an Oil Concern New York Times, 13 August 1999, retrieved 3 September 2017^
  3. Правительство создало новую нефтяную компанию Kommersant, 19 May 1994, retrieved 3 September 2017^
  4. Russia to Sell Majority of Sidanko Los Angeles Times, retrieved 3 September 2017^
  5. Alternate archive from Русский форум and another archive as Чеченская диаспора в Москве (Chechen diaspora in Moscow) author Ушкуйник. Справка. Влиятельные криминальные этнические авторитеты и лидеры диаспор Москвы ovg.ru, 1999, retrieved 27 October 2023^
  6. Newsline RadioFreeEurope/RadioLiberty, December 8, 1995, retrieved 3 September 2017^
  7. Too much trouble The Economist, 8 January 1998, retrieved 3 September 2017^
  8. Incomplete Privatization Mixes Ownership Of Russia's Oil Industry www.ogj.com, retrieved 3 September 2017^
  9. Entrepreneur In The Kremlin Bloomberg News, September 23, 1996, retrieved 3 September 2017^
  10. Sidanko hit with suit money.cnn.com, February 1, 1999, retrieved 3 September 2017^
  11. Investors ask which Russian bank domino will be the next to topple IntelliNews, retrieved 25 September 2017^
  12. Russia handed rights to Sidanko www.fn.com, September 8, 1999, retrieved 3 September 2017^
  13. Tyumen to transfer key subsidiary to Sidanko www.ogj.com, retrieved 3 September 2017^
  14. Игорь (Kitaev, Igor) КИТАЕВ. БАНКФОРМИРОВАНИЕ ПЕРЕХОДИТ В НАСТУПЛЕНИЕ: Взяв под контроль все ветви власти, ╚Альфа-групп╩ расширяет свой бизнес Novaya Gazeta, 19 July 2001, retrieved 20 July 2021^
  15. Справка по материалам в отношении руководства финансово-промышленной группы "Альфа" graniru.org, 21 April 2005, retrieved 20 July 2021^
  16. Справка по материалам в отношении руководства финансово-промышленной группы "Альфа", часть 2 graniru.org, 21 April 2005, retrieved 20 July 2021^
  17. Jeanne Whalen. Potanin Reaps Big Gain on Sidanko Sale Despite Firm's Rickety Financial Health Wall Street Journal, 3 August 2001, retrieved 3 September 2017^
  18. Gluttons for punishment? The Economist, 18 April 2002, retrieved 3 September 2017^
  19. Timeline: BP's chequered history in Russia The Daily Telegraph, retrieved 3 September 2017^