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. Last Updated: 07/27/2016

Value Placed on State Pipeline Firms

The Federal Property Management Agency has valued the oil products pipeline monopoly at 15 percent of the value of its crude pipeline monopoly before the planned merger of the two firms, Interfax reported Tuesday.

The news agency quoted sources as saying oil product pipeline monopoly Transnefteproduct had been valued at 54.8 billion rubles ($2.2 billion), while pipeline monopoly Transneft had been valued at 366 billion rubles.

The state had earlier decided to merge the two firms via a new stock issue by Transneft and the valuation will serve a guidance of the size of Transneft's charter capital increase.

The state owns all of Transneft's ordinary shares, which represents 75 percent of the firm's charter capital. Private investors control all of the firm's preferred stock, which represents 25 percent of the charter capital.

Preferred shares have no voting rights but their holders are entitled to at least 10 percent of annual net profit.