Jukos submits RG offer, awaits outcome of Rotch bid

Russian oil concern Jukos is reported to have submitted an official offer to purchase a 75% stake in Rafineria Gdanska (RG). According to Gazeta Wyborcza sources, Jukos perceives RG as a good investment opportunity, allowing it to supply fuel to the Kaliningrad area. Jukos is one of the largest oil companies in Russia, netting $2.5 billion in profit in 2000. However, the Treasury Ministry can only consider the Jukos bid if negotiations on the RG sale between Nafta Polska, the agency responsible for the privatization of the energy sector, and Rotch Energy of Britain break down. Rotch is being asked to provide financial guarantees to secure the $1 billion transaction. Apart from Jukos, Lukoil of Russia and MOL of Hungary are also interested in the RG stake. According to Treasury Minister Wieslaw Kaczmarek, the privatization should be finalized by mid-spring, when Rotch is supposed to provide the financial guarantees. Kaczmarek admitted that selling the stake to a Russian investor would "create a huge political storm." (Gazeta Wyborcza, p. 16) M.T.K.