UK sends ultimatum over RWE DEA UK sale

LetterOne group, run by the Russian billionaire Mihail Fridman, earlier this week bought RWE Dea, an oil and gas company based in Germany for 5.1 billion euros, from RWE group.

The acquisition went ahead despite the UK objecting the move. The reason the UK is opposing the transaction is the fact that RWE Dea owns several oilfields in the North Sea, and the UK energy minister Edward Davey on Friday expressed concern over what effect would potential sanctions against the company’s Russian owners have on those fields.

LetterOne previously said that in case of any sanctions, RWE would repurchase the UK business of RWE Dea, but the UK government is not convinced.

According to Vedomosti, the UK has given Fridman a week to explain why he should be given permission to keep the RWE Dea UK, and to provide assurances the company would protect its UK assets from possible sanctions.

Unless Fridman provides acceptable assurances, LetterOne may be forced to sell the RWE DEA UK to a third party.

Offshore Energy Today Staff