By James Marson
MOSCOW--Russia's Sintez Group could add a foreign partner in its
bid for Greek gas firm Depa in the hope of allaying concerns of
excessive Russian control over the country's energy market, its
chief executive said Tuesday.
The sale of Depa is a flagship for Greece's European
Union-backed privatization drive, aimed at bolstering the country's
finances and paying off debt.
But the sale comes as the EU is pushing to reduce Russian
involvement on Europe's energy markets, and Western officials have
raised concerns with Athens over the bids by privately owned Sintez
and Russia's state-controlled OAO Gazprom (GAZP.RS).
"We hope a partnership will remove any concerns," Sintez Chief
Executive Andrey Korolev said in an interview.
Besides Sintez and Gazprom, the other companies to have made the
final stage are two Greek groups and Azerbaijan's state energy firm
Socar. The finalists are allowed to form consortiums with any of
the nine approved bidders that didn't advance, but those five
companies can't partner with each other.
Sintez, controlled by tycoon Leonid Lebedev, isn't in talks with
those firms, Mr. Korolev said, but looks "positively" on the idea
of working with a partner.
"We're interested in working with companies that can add value
in some way. Some have experience operating gas distribution
networks and trading, some are suppliers, others have technology or
financing," Mr. Korolev said.
Eligible firms include Italy's Eni SpA (E) and Edison SA
(EDN.WA), and Spain's Enagas SA (ENG.MC).
Mr. Korolev added, however, that Sintez may not have enough time
to reach an agreement with potential partners, as the deadline for
any such agreement is March 15.
Greek officials say the U.S. and the EU have privately raised
concerns over the Russian bids, but insist that they will accept
the highest offer.
"We would like other companies to be given the opportunity,
mostly from Europe, to join a consortium," said a senior Greek
official familiar with the country's privatization plan. "But the
privatization procedures don't take into account politics. Whoever
offers the highest bid will win the tender."
The sales of Depa and its subsidiary Desfa, the gas-grid
operator, are expected to fetch up to 2 billion euros ($2.67
billion).
The EU is seeking to reduce the influence of Gazprom, which
supplies around a quarter of Europe's needs, on its energy markets
through regulatory measures and by encouraging countries to find
other sources.
A spokeswoman for EU Energy Commissioner Guenther Oettinger
couldn't be reached for comment Tuesday. Commenting on the Depa
sale in January, U.S. State Department spokeswoman Victoria Nuland
said the U.S. advises countries "to have diverse sources of supply
for their national energy needs so that they can't be held
hostage."
Sintez's Mr. Korolev touted his company's bid as chiming with
the EU's aims, saying it favors the construction of a second
liquefied natural gas terminal and a pipeline that could bring gas
from Azerbaijan to Europe via Greece. Russia's OAO Gazprom covers
around 80% of Greece's supplies.
Mr. Korolev said Sintez sees Greece as a potential
gas-transportation hub for supplies from the Mediterranean. Sintez
is also bidding for Desfa and would invest $3 billion in the
companies, he said.
Sintez has power-generating assets in Russia and Macedonia, as
well as oil and gas fields in Russia.
Some analysts and officials have questioned the bid from the
relatively small and little-known company.
"It's the odd one out. It's a small company that doesn't really
do gas," said one EU official.
Mr. Korolev said the company is acting on its own and not
fronting for a bigger player such as Gazprom, which is only able to
bid for Depa, and not Desfa, due to EU regulations. He said Sintez
has lined up financing from Russian banks.
Binding bids for Depa and Desfa are due April 12, and the
results of the tender are expected to be announced in early
May.
--Alkman Granitsas and Philip Pangalos in Athens and Alessandro
Torello in Brussels contributed to this item.
Write to James Marson at james.marson@dowjones.com
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