On Air Now

Upcoming Shows

Program Schedule »


Listen Live Now » 590 AM Kalamazoo, MI


Current Conditions(Kalamazoo,MI 49001)

More Weather »
60° Feels Like: 60°
Wind: SSE 0 mph Past 24 hrs - Precip: 0”
Current Radar for Zip


Clear 47°


Mostly Sunny 72°

Sat Night

Partly Cloudy 53°


CORRECTED: Russian oil trade king buys more gas assets

</head> <body> <p>(Corrects story published on May 27 to clarify in the second paragraph that Gunvor is handling 30-40 percent of oil exports from firms like Rosneft, not the bulk of exports)</p> <p>By Katya Golubkova</p> <p>MOSCOW, May 27 (Reuters) - One of Russia's most secretive businessmen, Gennady Timchenko, revealed on Wednesday he has built up an 18 percent stake in gas firm Novatek <NVTK.MM> as he seeks to diversify his oil wealth into other industries.</p> <p>Timchenko co-founded the world's third-largest crude oil trader by volume, Switzerland-based Gunvor, which has annual revenues estimated at $70 billion and handles 30-40 percent of exports from the likes of state oil major Rosneft <ROSN.MM>.</p> <p>Gunvor's rapid growth prompted speculation the firm enjoyed special support from the Kremlin, although Gunvor's competitors say the trader often offers healthy premiums to outbid rivals.</p> <p>Last year, the mysterious tycoon wrote an open letter headlined "Gunvor, Putin and me", saying media speculation about his close ties with the former Russian president and current prime minister, Vladimir Putin, were "overblown".</p> <p>On Wednesday, after a year of virtual complete public silence, Timchenko announced through his fund, little known to date Luxembourg-based Volga Resources, that he had increased his stake in Novatek by 13.13 percentage points to a total of 18.2 percent.</p> <p>Novatek is Russia's second-largest gas producer after state-run giant and gas export monopoly Gazprom <GAZP.MM>, which holds a stake of 19 percent in Novatek -- now only slightly more than Timchenko.</p> <p>The purchase of 13 percent in Novatek would have cost Timchenko $1.56 billion at today's market price. Volga Resources said it bought the shares from Novatek's management.</p> <p>Novatek traded at $45.2 per GDR in London at 1320 GMT (9:20 a.m. EDT), up from as low as $13 in December but down from $97 last May, when Russian markets reached their peaks.</p> <p>CONFUSION OVER PAYMENT</p> <p>Shares in Novatek rose 7 percent in Moscow, outperforming the broader market <.MCX> as traders said news about Timchenko and Tuesday's announcement that Novatek bought new gas reserves supported the stock.</p> <p>"Both Gazprom and Timchenko are very close to the country's leadership and most likely their big political influence will help Novatek solve whatever problems it has," said Valery Nesterov from Troika Dialog brokerage.</p> <p>On Tuesday, Novatek said it would pay $650 million to buy 51 percent in gas firm Yamal LNG, which controls the giant South-Tambeyskoye Arctic natural gas field.</p> <p>Novatek said the seller of Yamal LNG was Volga Resources but did not name Timchenko.</p> <p>The fund itself said later that Volga was created in 2007 by Timchenko to invest in oil, gas, infrastructure and development projects in the former Soviet Union, Eastern and Central Europe and Turkey.</p> <p>South-Tambeyskoye has reserves of up to 1.3 trillion cubic meters -- equal to 45 percent of global annual gas consumption. By comparison, Gazprom controls a fifth of global gas reserves, enough to supply the world with gas for over 10 years.</p> <p>Business newspaper Kommersant quoted unnamed sources on Wednesday as saying Novatek would grant $650 million worth of its shares to Timchenko in return for his stake in Yamal LNG.</p> <p>But Novatek said on Wednesday the deal did not involve equity. "It is a cash deal ... in several tranches. The first tranche will probably be next week," said Chief Financial Officer Mark Gyetvay, adding that the remaining sum could be raised from the debt market.</p> <p>UniCredit analysts said in a note the Yamal LNG acquisition appeared cheap but an objective appraisal of the reserves was difficult at the moment.</p> <p>"We cannot be sure of the development costs, which may include construction of the cross-Yamal pipelines and/or an LNG plant above the Arctic circle," UniCredit said.</p> <p>(Writing by Dmitry Zhdannikov; Editing by David Cowell and Jon Loades-Carter)</p> </body> </html> </div><!-- end article-body --> </div><!-- end aticle-body-wrapper --> <aside> <ul class="social-share-btns clearfix"> <li><g:plusone size="medium" href="http://wkzo.com/news/articles/2009/sep/02/corrected-russian-oil-trade-king-buys-more-gas-ass/"></g:plusone></li> <li><div id="fb-root"></div><script src="http://connect.facebook.net/en_US/all.js#appId=112315878855956&xfbml=1"></script><fb:like href="http://wkzo.com/news/articles/2009/sep/02/corrected-russian-oil-trade-king-buys-more-gas-ass/" action="recommend" send="true" layout="button_count" width="150" show_faces="false" font=""></fb:like></li> <li><a href="http://twitter.com/share" class="twitter-share-button" data-url="http://wkzo.com/news/articles/2009/sep/02/corrected-russian-oil-trade-king-buys-more-gas-ass/" data-text="CORRECTED: Russian oil trade king buys more gas assets" data-count="horizontal">Tweet</a><script type="text/javascript" src="http://platform.twitter.com/widgets.js"></script></li> </ul><!-- end social-share-btns --> </aside> </div><!-- end article-container --> <section class="clearfix text-ad-container"><div class="text-ad"></div><div class="text-ad"></div><div class="text-ad"></div></section> <div id='taboola-below-main-column'></div> <script type="text/javascript"> window._taboola = window._taboola || []; _taboola.push({mode:'thumbs-2r', container:'taboola-below-main-column', placement:'below-main-column'}); </script> <div id='taboola-text-2-columns'></div> <script type="text/javascript"> window._taboola = window._taboola || []; _taboola.push({mode:'text-links-5r', container:'taboola-text-2-columns', placement:'text-2-columns'}); </script> <script> window._taboola = window._taboola || []; _taboola.push({flush:true}); </script> <section class="comment-container"> <h1 class="h2 visuallyhidden">Comments</h1> <a href="/news/articles/2009/sep/02/corrected-russian-oil-trade-king-buys-more-gas-ass/#disqus_thread"></a> <div id="disqus_thread" class="section-widget"></div> <script type="text/javascript"> var disqus_shortname = 'wkzo'; var disqus_title = 'CORRECTED: Russian oil trade king buys more gas assets'; var disqus_url = 'http://wkzo.com/news/articles/2009/sep/02/corrected-russian-oil-trade-king-buys-more-gas-ass/'; (function() { var dsq = document.createElement('script'); dsq.type = 'text/javascript'; dsq.async = true; dsq.src = 'http://' + disqus_shortname + '.disqus.com/embed.js'; (document.getElementsByTagName('head')[0] || document.getElementsByTagName('body')[0]).appendChild(dsq); })(); </script> </section><!-- end comment-container --> </article> </div><!-- end of col-1 --> <div id="col-2"> <form class="section-search-form clearfix" method="get" action="/search/"> <fieldset class="clearfix"> <input class="section-search" type="text" rel="Search News" name="q" placeholder="Search News" /> <input class="section-search-submit" type="image" alt="Search" src="http://static.mwcradio.com/images/icons/section-search.gif" /> </fieldset> </form> <div class="ad-300x250"></div> <aside class="aside-module top-stories"> <h1>Top Stories</h1> <ul class="unstyled-list single-col-list"> <li><a href="/news/articles/2014/sep/18/police-seek-slew-of-charges-in-kalamazoo-arson-assault/" title="Full Article: Police seek slew of charges in Kalamazoo arson, assault">Police seek slew of charges in Kalamazoo arson, ...</a></li> <li><a href="/news/articles/2014/sep/18/additional-storm-clean-up-scheduled-for-next-week-in-kalamazoo/" title="Full Article: Additional storm clean-up scheduled for next week in Kalamazoo">Additional storm clean-up scheduled for next wee...</a></li> <li><a href="/news/articles/2014/sep/18/three-arrested-on-meth-charges-in-saint-joseph-county/" title="Full Article: Three arrested on meth charges in Saint Joseph County">Three arrested on meth charges in Saint Joseph C...</a></li> <li><a href="/news/articles/2014/sep/18/bronson-childrens-hospital-annual-walk-and-run-set-for-this-month/" title="Full Article: Bronson Children's Hospital Annual Walk and Run set for this month">Bronson Children's Hospital Annual Walk and Run ...</a></li> <li><a href="/news/articles/2014/sep/18/self-guided-tours-of-new-western-michigan-university-medical-school-this-weekend/" title="Full Article: Self guided tours of new Western Michigan University Medical School this weekend">Self guided tours of new Western Michigan Univer...</a></li> </ul> </aside> <div class="text-ad"></div> <nav class="aside-module"> <h1>News Sections</h1> <ul class="unstyled-list two-col-list clearfix"> <li><a href="/news/sections/local/" title="Local News Section">Local</a></li> <li><a href="/news/sections/state/" title="State News Section">State</a></li> <li><a href="/news/sections/national/" title="National News Section">National</a></li> <li><a href="/news/sections/world/" title="World News Section">World</a></li> <li><a href="/news/sections/localsports/" title="Local Sports News Section">Local Sports</a></li> <li><a href="/news/sections/sports/" title="National Sports News Section">National Sports</a></li> <li><a href="/news/sections/politics/" title="Politics News Section">Politics</a></li> <li><a href="/news/sections/business/" title="Business News Section">Business</a></li> <li><a href="/news/sections/health/" title="Health News Section">Health</a></li> <li><a href="/news/sections/science/" title="Science News Section">Science</a></li> <li><a href="/news/sections/technology/" title="Technology News Section">Technology</a></li> <li><a href="/news/sections/entertainment/" title="Entertainment News Section">Entertainment</a></li> </ul> </nav> <div class="text-ad"></div> <div class="ad-300x250"></div> <aside id="recentcomments" class="aside-module dsq-widget sidebar-comments"> <h1 class="dsq-widget-title">Recent Comments</h1> <script type="text/javascript" src="http://wkzo.disqus.com/recent_comments_widget.js?num_items=3&hide_avatars=0&avatar_size=32&excerpt_length=200"></script> </aside> <div class="text-ad"></div> </div><!-- end col-2 --> </div><!-- end page-content-wrapper-inner --> </div><!-- end page-content-wrapper-outer --> <div id="site-footer-wrapper"> <footer id="site-footer" class="clearfix"> <ul class="footer-list footer-bucket"> <li><a href="http://static.mwcradio.com/pdf/footer-files/privacy.pdf" title="Privacy Policy">Privacy Policy (PDF)</a></li> <li><a href="http://static.mwcradio.com/pdf/footer-files/termsofuse.pdf" title="Terms of Use">Terms of Use (PDF)</a></li> <li><a href="http://static.mwcradio.com/pdf/footer-files/contestrules.pdf" title="Contest Rules">Contest Rules (PDF)</a></li> <li><a href="http://static.mwcradio.com/pdf/footer-files/contest-rules-addendumC.pdf" title="Contest Rules - Addendum C">Contest Rules - Addendum C (PDF)</a></li> </ul> <ul class="footer-list footer-bucket"> <li><a href="/advertise/" title="Advertise With Us">Advertisers</a></li> <li><a href="http://www.midwestcareers.com/" title="Midwest Careers">Employment</a></li> <li><a href="/eeo/" title="EEO">EEO</a></li> </ul> <div class="footer-bucket"> <ul class="footer-list footer-social-list"> <li> <a href="http://facebook.com/WKZO590AM" title="AM 590 WKZO on Facebook"> <img src="http://static.mwcradio.com/images/icons/facebook20.png" alt="Facebook" /> Facebook </a> </li> <li> <a href="http://twitter.com/WKZONews" title="AM 590 WKZO on Twitter"> <img src="http://static.mwcradio.com/images/icons/twitter20.png" alt="Twitter" /> Twitter </a> </li> </ul><!-- end social links --> <ul class="footer-list footer-bucket"> <li> <a href="https://play.google.com/store/apps/details?id=com.midwestcommunications.wkzoam&feature=search_result#?t=W251bGwsMSwyLDEsImNvbS5taWR3ZXN0Y29tbXVuaWNhdGlvbnMud2t6b2FtIl0." title="Download Our Android App"> <img src="http://static.mwcradio.com/images/icons/android20.png" alt="Android" /> Listen on Android </a> </li> <li> <a href="https://itunes.apple.com/us/app/wkzo-am-590-fm-96.5/id634060235?mt=8" title="Download Our iOS App"> <img src="http://static.mwcradio.com/images/icons/apple20.png" alt="Apple" /> Listen on iPhone/iPad </a> </li> </ul> </div> <ul class="footer-list footer-bucket contact-info"> <li>© 2014 AM 590 WKZO</li> <li>Call Letters: WKZO</li> <li><span class="frequency-location">590 AM Kalamazoo, MI</span></li> <li>Studio Line 1: 269-382-4280</li> <li>Text Us at 80373</li> <li><a href="/contact-us/" title="Contact Us">Contact Us</a></li> </ul> </footer> </div><!-- end footer-wrapper --> <script src="https://ajax.googleapis.com/ajax/libs/mootools/1.4.5/mootools-yui-compressed.js"></script> <script src="http://static.mwcradio.com/js/mootools-more-"></script> <script src="http://static.mwcradio.com/apps/nowplaying/js/jug-application.js"></script> <script src="http://content.aimatch.com/swfobject.js"></script> <script src="https://apis.google.com/js/plusone.js"></script> <script src="http://static.mwcradio.com/js/mwc.js?5"></script> <script src="http://static.mwcradio.com/datepicker/Locale.en-US.DatePicker.js"></script> <script src="http://static.mwcradio.com/datepicker/Picker.js"></script> <script src="http://static.mwcradio.com/datepicker/Picker.Attach.js"></script> <script src="http://static.mwcradio.com/datepicker/Picker.Date.js"></script> <!--[if lt IE 7 ]> <script src="//ajax.googleapis.com/ajax/libs/chrome-frame/1.0.2/CFInstall.min.js"></script> <script>window.attachEvent("onload",function(){CFInstall.check({mode:"overlay"})})</script> <![endif]--> <script src="http://static.mwcradio.com/js/lightface/LightFace.js"></script> <script src="http://static.mwcradio.com/apps/scoop/js/article_details.js" type="text/javascript"></script> </body> </html>