OJSC NC Rosneft acquires all oil assets of Mika Limited in Armenia

There is unconfirmed information that OJSC NC Rosneft has acquired all the oil assets of Mika Limited in Armenia, a source close to oil business in Armenia told ArmInfo.  

According to the source, the Russian company has acquired not only the car-filling stations and oil bases, but also the offices of Mika Limited. So far, the information has not been confirmed officially.  Earlier, the owner of Mika Limited, a well-known businessman Mikhail Baghdasarov has announced an intention to sell all his assets, including the oil business.

Earlier on 23 President of Armenia Serzh Sargsyan received Igor Sechin, CEO of the biggest oil company in Russia, Rosneft. In the presence of President Sargsyan, Representatives of Rosneft, Pirelli Tyre Russia and Rosneft Armenia signed a Memorandum of Understanding to set up a butadiene-styrene rubber joint venture in Armenia.

Implementation of the project will allow setting up a modern butadiene-styrene rubber JV in Armenia. This type of rubber is used in production of 'green tires' and helps reducing vehicle fuel consumption.  Under the Memorandum, NC Rosneft comes out as the leading investor and shareholder of the enterprise and Pirelli jointly with Rosneft will be engaged in research and development activities in the field of the innovative rubber production. In addition, Pirelli expressed readiness to buy the finished products.

Igor Sechin, in turn, said "implementation of the project will restore the rubber industry and help foster economy of Armenia and upgrade its competitive abilities in the world market. Furthermore, this Memorandum another example of expanded relations of Armenia and Russia following ratification of the trade agreements between the two countries."

The press service of Rosneft reported earlier that as part of his visit to Armenia the company's President Igor Sechin and General Director of L.L.C. Rosneft-Armenia Artur Alaverdyan signed a contract for oil- products deliveries to Armenia within the framework of the joint venture, - L.L.C. Rosneft-Armenia - created on the 10th of December 2013 between Rosneft and its Armenian partner Oil Techno.

With the purpose of further deepening presence in the marketing value chain the companies started studying acquisition of assets in the sphere of wholesale and retail trade of oil-products, including oil-product storage capacities and an aircraft refueling business.

Mikhail Baghdasarov founded Mika Limited CJSC in 2001, as well as Hadrout Winnert SCJSC, and Mika- Karabakh CJSC jewelry production. Mika Armenia Trading Affiliated Company LLC acquired 100% stake in Armavia LLC and ArmSavingsbank's shares. According to Forbes, Baghdasarov was among top three richest persin in Armenia and top thirty influential representatives of the CIS business elite.