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WORLD BUSINESS

Abramovich reaps Gazprom windfall

By Matthew Chance
CNN Senior International Correspondent

Roman Abramovich
Analysts note the contrast in fortunes of Abramovich, pictured, and Kremlin critic Khodorovsky.

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Russia
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MOSCOW, Russia (CNN) -- It is being heralded as the biggest buyout in Russian corporate history.

The world's largest producer of natural gas, the Russian state-controlled Gazprom, purchased Wednesday a majority stake in the private company Sibneft, the country's fifth largest oil company.

In a statement, Gazprom said the agreement was a step towards reaching its goal of diversifying its business and turning Gazprom into a global energy company.

The Russian government has made no secret of its plans to regain control of the country's vast oil resources.

"This deal is also for Gazprom about looking East. The reserves of Sibneft are situated such so that they can be easily sold into the Asian basin," said Eric Kraus, strategist at Moscow investment house Sovlink.

"And this is the growth industry right now, so this is where Gazprom wants to be."

And one man in particular stands to benefit.

Russian billionaire Roman Abramovich -- owner of Britain's Chelsea football club -- is selling Sibneft.

Analysts say his close ties with the Kremlin have paid off. He could soon be an estimated $9 billion richer.

It is all in stark contrast to Mikhail Khodorkovsky's deal.

Russia's former richest man -- who voiced criticism of the Kremlin -- had the bulk of his oil company, Yukos, seized after being convicted of tax evasion.

His appeal against his sentence, reduced to eight years, was recently rejected.

The Sibneft purchase is being welcomed by investors. Western banks are believed to be offering $12 billion in loans to finance the deal.

Analysts say it shows the Kremlin is not just intent on seizing oil assets through the courts -- but is prepared to do business too.

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