Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Rosneft Buys Yukos Export Unit

State-controlled oil firm Rosneft won another auction of the remains of bankrupt oil firm Yukos on Wednesday, buying its important transport assets including those Yukos used for exports to China.

Rosneft paid $729 million, just above the starting price, for the lot which included Yukos' key transport units, Yukos-Transservice and East Asia Transit.

Rosneft's only rival at the auction, a previously unknown firm called Benefit, pulled out of the race after Rosneft's first bid in a development similar to many previous auctions at which Rosneft snapped up most of Yukos' assets.

The Wednesday lot included Yukos-Transservice, which owns long-term leasing contracts on around 7,000 railway cars and short-term leasing agreements on 5,000 railway cars, Rosneft said. The unit also had "considerable amounts of cash" on its accounts, Rosneft added.

Yukos said on its web site that the Yukos-Transservice unit had 16,500 cars in 2006, which the firm used to carry oil and refined products for export. It was not immediately clear what happened to the rest of the cars.

Industry sources said new rail cars cost from $30,000 to $35,000 while a secondhand rail car costs from $20,000 to $25,000, depending on its condition.

Other assets in the lot included 66 percent in the East Asia Transit unit, which has the right to deliver oil to China via Mongolia, and 42 tank-cars for transportation of refined products.