Install

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

. Last Updated: 07/27/2016

Seller Hired for Oil Port in Estonia

Severstaltrans, the transport company spun off from the country's largest steel company, said Thursday that it hired ING Group to sell an Estonian oil port on the Baltic Sea.

Severstaltrans plans to sell its 80 percent stake in Estonian Oil Services, one of the largest fuel oil ports on the Baltic Sea coast, the company said in a statement Thursday.

TNK-BP, Surgutneftegaz, and Gazprom Neft export crude and oil products through EOS, said Anna Vostrukhova, a spokeswoman for Severstaltrans. "There is interest in the sale," Vostrukhova said, declining to comment on the price and reasons for the sale.

Russian oil shipments through Estonia fell 15 percent in June from a year earlier, according to Eesti Raudtee, Estonia's rail-freight carrier. The trade was reduced partly because of tensions between the two countries over the relocation of a Soviet war memorial.

Royal Vopak, the world's largest storage company for oil and chemicals; Shell, Europe's biggest oil company; and Trafigura, a Swiss commodities trading company, may bid for EOS, according to a media report last month, which cited unidentified traders.

Severstaltrans transported about 5 percent of Russian cargo in 2006. Its senior executives Konstantin Nikolayev, Nikita Mishin and Andrey Filatov in April agreed to buy a 50 percent stake in the company from billionaire Alexei Mordashov, owner of Severstal.

The executives have not disclosed the price.