LUKOIL says Georgia war may affect business- paper

Reuters) ^ | Mon Sep 1, 2008 7:59am EDT

[BenLurkin]

The head of Russian oil major LUKOIL (LKOH.MM: Quote, Profile, Research, Stock Buzz), Vagit Alekperov, was quoted on Monday as saying that tension between Russia and the West caused by the conflict in Georgia may affect Russian firms' international projects.

The brief war, which erupted on Aug. 7 when Russian troops repelled a Georgian attack on pro-Russian South Ossetia, caused some Western governments to accuse Moscow of occupying parts of Georgia and urge other countries to review its ties with Russia.

Vedomosti business daily quoted Alekperov as saying that the tensions might complicate the finalisation of LUKOIL's recently agreed joint venture with Italy's second-largest refiner ERG (ERG.MI: Quote, Profile, Research, Stock Buzz), which should give LUKOIL a share in ERG's two plants in Sicily.

"One can not exclude that we might have problems. For example, getting European anti-monopoly organs' approval to buy Italian refineries in Sicily," Alekperov told Vedomosti in an interview.

LUKOIL, Russia's No. 2 oil firm in which U.S. oil major ConocoPhillips COP.L owns a 20 percent stake, in June finally broke into the west European refining business by buying 49 percent of ERG SpA's Mediterranean plant for 1.35 billion euros ($2.1 billion).

LUKOIL and ERG agreed a joint venture valued at 2.75 billion euros to control ERG's Isab di Priolo refinery in Sicily.

Alekperov added the Russian-Georgian conflict has so far caused no problems for his company's international projects, including those in ex-Soviet Azerbaijan, which neighbours Georgia.

European Union leaders are meeting in Brussels on Monday to draft a response to Moscow's actions in Georgia, which they have called "aggressive".

Russia, which has pulled out most of its forces in line with a ceasefire deal between Russia and Georgia, says the remaining troops are peacekeepers needed to protect the separatist region from new Georgian violence. Continued...

[DogBarkTree]

I almost ran out of gas the other day avoiding filling up at a Lukoil station.

[ProtectOurFreedom]

I visited my Mom in the Philly ‘burbs last weekend. When did the Lukoil stations pop up all over the place? I’m with you — I’d run out first before pulling into one, especially with the Conoco Phillips connection.

[DogBarkTree]

The Russians know they will find lots of friends in SE PA and New Jersey.

[Cicero]

I can’t lay my hands on the article now, but I read a piece saying that the Russian balance of payments took a pretty big hit immediately after the invasion of Georgia.

Presumably it was people taking their money out, not necessarily to punish Russia for this atrocity as such, but because Russia under Putin has again shown that it can’t be trusted not to grab by force anything they covet—such as the Georgian pipeline.

Why would anyone sane invest their money in Russia, when a successful venture would be instantly appropriated by the Russian Mafia? It has happened often before, and this latest venture is a serious warning to stay clear of these corrupt thugs.

[Doc Savage]

All the Mobil stations here (SE PA) were sold to LukOil. The three near my house have all gone out of business. Everyone knows these morons are Commies and refuse to buy gas from them. May they rot in hell!