AAR To Invest Main Proceeds From TNK-BP Sale In Russia

MOSCOW - The AAR consortium of Soviet-born billionaires will invest the main proceeds from a sale of stake in Russo-British oil venture TNK-BP into Russia's economy, Interfax news agency reported Tuesday, citing an AAR statement.

The decision was announced less than a week after Russia's President Vladimir Putin urged the AAR consortium, which sold its stakes in TNK-BP to state-controlled OAO Rosneft, to reinvest the proceeds domestically.

Rosneft in October agreed to buy out BP PLC and the AAR in a deal worth a total of $55 billion, the largest takeover in Russia's post-Soviet history. The AAR tycoons-Mikhail Fridman, German Khan, Viktor Vekselberg and Len Blavatnik-will get more than $28 billion when the deal closes in the first half of 2013.

Earlier this week, Rosneft said it had raised $16.8 billion in bank loans and was also planning to sign a trade-finance package with two international oil traders to finance the buyout of TNK-BP.

Copyright (c) 2012 Dow Jones & Company, Inc.

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