Germany examines RWE's planned Russian oil deal

June 17, 2014

The German government is examining whether energy company RWE's plan to sell its oil and gas exploration and production division to a Russian-linked investment company threatens Germany's strategic interests.

RWE AG announced in mid-March, as tensions between Russia and the West mounted over Ukraine, that it planned to sell its RWE Dea unit to LetterOne Group, an international investment arm of Russian billionaire Mikhail Fridman's Alfa Group. The proposed deal values the business at about 5.1 billion euros ($6.9 billion).

Germany's Economy Ministry said Sunday it is now examining the deal — a process that will take about two months. The government could block the deal or impose conditions if it concludes that the sale poses problems to Germany's interests.

Copyright, AP, 2014.