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. Last Updated: 07/27/2016

$240M Tatneft-Sibir Deal Scuttled

LONDON -- No. 6 Russian oil producer Tatneft's efforts to buy 33 percent of London-listed oil firm Sibir Energy for $240 million fell apart Tuesday.

Sibir said in a statement it had been unable to agree with Tatneft and trading partner Corus -- the Alliance -- about the level of control the two firms required over Sibir.

"Both ourselves and the Alliance tried very hard to find solutions to the differences between us but, in the end, both parties have had to reluctantly accept that a mutually acceptable solution could not be found," Sibir CEO Henry Cameron said in a statement.

Under the preliminary agreement announced in April, Tatneft and Corus were also to have provided Sibir with a $120 million loan, as well as subscribing for Sibir shares at around 22.8 pence.

Sibir said the loan was, in the end, provided by the Bank of Moscow and would be used to establish the Moscow Oil & Gas Co., a joint venture based on Sibir's production assets and the capital's refinery and chain of petrol stations.