Dominic Kennedy in the Times reports:
‘An oil company owned by Roman Abramovich, the owner of Chelsea Football Club, and BP is facing legal action over an alleged billion-dollar ploy to deprive shareholders of their profits. The case against Slavneft is being brought by an investment firm whose shareholders include the BT and Royal Mail pension funds, Harvard College and the Government of Norway.
’Slavneft is accused of selling oil at rock-bottom prices to its sister companies, which resell it at huge profits. The oil is produced by a company controlled by Slavneft but with minority shareholders, who lose their opportunity to make those profits.
’If proved, the case raises questions about the source of the wealth of Mr Abramovich, the world's 25th richest person, with a personal fortune of $11 billion.
’At the heart of the conflict is Megionneftegaz (Megion), Russia's eighth-largest oil producer. Most of the shares in Megion belong to Slavneft, owned by Mr Abramovich's Sibneft oil giant and TNK-BP, a joint venture between BP and another Russian oil company.
’The claimants allege that Megion has been deliberately transferring its profits to companies connected to the majority shareholders. Megion sold 86 million barrels of oil at just $7.67 a barrel when it should have been worth at least $15.09, nearly twice as much, they say.
’Oil was sold to companies in Belgium, Russia and the British Virgin Islands which appear to be related to the majority shareholders. These buyers could then resell the oil at market prices, keeping the huge profits themselves.
’The consequence of giving away its profits is that Megion made a loss of 4 per cent in the first half of last year, by far the worst performance by a Russian oil giant. For the whole of last year, Slavneft paid dividends totalling $740 million.’