Orlen seals the deal with Yukos

The agreement was signed in the Netherlands last Friday. 

"We are very happy with the court verdict. It paves the way for the transaction," Orlen spokesperson Dawid Piekarz said after the court's decision was announced.

The company agreed to pay $1.49 (zł.4.6) billion for Yukos' stake in the largest business and only oil refinery in the region. The troubled Russian firm owes billions of dollars in back taxes to Moscow, and has been trying to sell its stake in Możejki Nafta since early last year. The sale was challenged in courts in several countries by Russian authorities, who worried Moscow wouldn't see any of the proceeds.

Orlen is also prepared to pay more than $1 (zł.3.1) billion for the 40.66-percent stake owned by the Lithuanian state, and has committed to investing a further $1 billion in the refinery once it takes over operations.

"Yukos will sign with the Poles and then we will sign," said Saulius Specius, an adviser to Lithuanian Prime Minister Algirdas Brazauskas. "This will happen when we receive approval from parliament for Poland's investment, which is needed according to law," Specius added.

Orlen will purchase 30.66 percent of Możejki's share capital from the Lithuanian state for $851.829 (zł.2,632) million and has an option to buy the remaining 10 percent for 278 million within five years.

Earlier in the year, Kazakh firm KazMunaiGas was tipped as the favorite to win the deal. After news of the agreement between Yukos and Orlen broke late last week, KazMunaiGas said it would raise its bid for Możejki, which originally stood at $1.2 (zł.3.7) billion, according to Lithuanian government statements. However, a deal with the Kazakh firm now seems highly unlikely. (Reuters)

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