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. Last Updated: 07/27/2016

Gazprom Transfers $13Bln for Sibneft

Gazprom was to complete its acquisition of Sibneft on Thursday by transferring $13.1 billion in cash to Millhouse Capital, said a source close to Gazprom.

"The full payment for Sibneft is going through today, the entire 100 percent," the source said late Thursday. "The deal should be announced tomorrow."

State-owned Gazprom agreed last month to buy 72.6 percent in Sibneft from the No. 5 oil firm's parent company, Millhouse Capital, which holds assets belonging to billionaire Roman Abramovich. Gazprom will now control 75.7 percent of Sibneft.

The Millhouse purchase increases the state's control over crude oil output to about 30 percent, giving the government considerable leverage over an industry that as recently as a year ago was almost completely private.

On Tuesday, Gazprom presented its deputy CEO, Alexander Ryazanov, as the new chief of Sibneft. He replaces Sibneft president Yevgeny Shvidler.