OREANDA-NEWS. The Extraordinary Meeting of Shareholders of Bashneft held today by absentee voting decided that the Company should sell its 98% stake in the authorized share capital of OJSC United Petrochemical Company (UPC) to OJSC JSFC Sistema.

In the course of the transaction approved by the Meeting Bashneft will sell the above-mentioned stake in UPC to OJSC JSFC Sistema for 6.2 billion roubles. The transaction value was determined based on independent appraisal made by one of the Big Four audit firms. The transaction forming part of Bashneft's strategy for divesting non-core assets is expected to be completed before the end of the third quarter of 2013.

As part of establishing long-term market relations between Bashneft and UPC, the Meeting of Shareholders approved the contract for selling up to 1.1 million tonnes of Bashneft's petrochemicals to OJSC Ufaorgsintez, which forms part of UPC, before December 31, 2014. The selling price for petrochemicals will be calculated in accordance with the approved pricing formula based on current market indicators.

The Meeting also approved renewing the sales and purchase agreement between JSOC Bashneft and OJSC RussNeft, under which up to 1.2 million tonnes of oil are to be sold before August 31, 2014; this oil will subsequently be processed at Bashneft's own refineries.

The Meeting decided that Bashneft should join the International Association of Oil & Gas Producers (OGP) and IPIECA, the global oil and gas industry association for environmental and social issues. Bashneft's participation in OGP and IPIECA will provide the Company with access to best practices, methods and expertise in the sphere of HSE and social responsibility.