VTB's Acquisition of Zvezda Shipyard from Rosneft Canceled
MOSCOW (Reuters) - Russia's second-largest lender VTB's deal to acquire the Zvezda shipbuilding yard from oil company Rosneft is now dead because the VTB-owned United Shipbuilding Corporation (USC) cannot finance the acquisition, VTB CEO Andrei Kostin said on Tuesday.
VTB is currently running USC, Russia's largest shipbuilder, which operates about 40 shipyards, design offices and repair yards across Russia, employing 95,000 staff.
VTB said in December of last year that it was in talks with Rosneft over the Zvezda acquisition, stressing that consolidation of shipbuilding assets in USC was a good thing for the sector.
"The evaluation is no longer ongoing. There is no deal anymore. And there won't be one. Because USC does not have the funds yet, but there is an effective owner there who will continue to operate," Kostin told reporters.
Zvezda is Russia's most advanced shipbuilding yard, focusing on building large Arc7 ice-class tankers, able to cut through 2-metre thick ice to transport liquified natural gas (LNG) from Arctic projects.
Russia is keen to develop its shipbuilding industry since it can no longer acquire advanced vessels and sophisticated maritime equipment from Western makers due to sanctions, imposed over its military action in Ukraine.
(Reporting by Olesya Astakhova and Gleb Bryanski; Editing by Sharon Singleton)
