The Russian government agreed in January to restructure debts of state-owned oil company OAO Rosneft (ROSN.RS) relating to its purchase of a former OAO Yukos (YUKO.RS) asset, the Vedomosti business daily reported Thursday, citing unnamed sources.
Rosneft bought Yukos' Yuganskneftegaz production unit in 2004, taking on $5 billion in back tax charges in the process. It later managed through the courts to reduce that amount to $1.3 billion plus $973 million in fines and penalties.
January's deal allows Rosneft to repay the debt over five years and offers it the chance to avoid paying the fines and penalties altogether should it repay the basic sum ahead of time, the paper said.
Peter O'Brien, Rosneft's vice president for finance and investment, told a conference call in mid-January that Rosneft may be able to sidestep the fines and penalties should it repay the debt early.