ST. PETERSBURG, Russia—Rosneft and China National Chemical Corp. (ChemChina) have signed a memorandum of understanding regarding the planned purchase of a 30-percent stake in ChemChina Petrochemical Co. Ltd (CCPC) by the Russian company.
Among other links, ChemChina and Rosneft are currently two of the largest shareholders in Italian tire-maker Pirelli & C. S.p.A. The Chinese group is currently seeking to acquire control of Pirelli, having bought nearly 30 percent of its shares in March.
Signed at the Saint Petersburg International Economic Forum, the document envisages Rosneft buying stocks using proceeds from oil supplied to ChemChina.
The two sides have also signed a contract the supply of 200,000 tons a year of crude oil to the ChemChina by Rosneft for a year.
The agreement, said Rosneft, is in a bid to diversify supplies to the region's key customers. Rosneft expects its position to significantly improve in the Asia-Pacific region and especially in China through the implementation of the memorandum of understanding.
“The cooperation with ChemChina will allow Rosneft to obtain a new potential for the production and marketing of products along the whole value-chain to the end-customer,” its statement said.
With annual sales of $39.4 billion in 2013, ChemChina is considered China's largest chemical company and 19th among the world's top 100 chemical corporations.
ChemChina is active in six sectors—new chemical materials; basic chemical materials; oil processing; agrochemicals; rubber products; and chemical equipment—according to the firm's website.