Russia’s state-owned Rosneft said this week it plans to acquire Morgan Stanley’s unit for storing, trading and transporting oil products.
The deal requires approval from the U.S. Senate Foreign Investment Committee, according to oilprice.com.
Approval is expected during the first half of 2014.
Financial terms of the transaction weren’t disclosed.
The transaction wouldn’t include Morgan Stanley’s current client business related to oil and products merchanting, its ownership stake in TransMontaigne, or any of its commodities operations outside of the oil and oil products sector, the report said.
Rosneft Chief Executive Igor Sechin said the transaction “would boost the company’s presence on the global oil markets and help to increase the value of Rosneft’s own oil output as well as open up new revenue streams by providing access to third-party crude oil and products.”
As part of transaction, about 100 executives in the U.S., Britain and Singapore will move to Rosneft, the companies said.
Rosneft produced more than 4.8 million barrels of oil equivalent per day during 2013.
The deal will give Rosneft the ability to trade without intermediaries and will likely boost its revenue further, oilprice.com said.
In an email sent to Reuters, U.S. Senator Edward Markey said that “the U.S. Committee on Foreign Investment must closely review this proposed acquisition …. to ensure that a Russian state-owned oil company cannot manipulate our markets and harm the United States and its citizens.”