Russia Further Cements Position in Gas Market

Russia does not have any intention to give ground in the standoff about Crimea, raising the ante and cementing its position in Italy.

On Tuesday, the Crimean parliament has confiscated the Ukrainian companies Ukrtransgaz, Chernomorneftegaz and the Feodosia petroleum products terminal. It also claimed that the continental shelf now belongs to Crimea.

A few hours later, Rosneft released a note announcing it is increasing its stake in Pirelli.

‘Rosneft has reached an agreement with international consortium composed of Unicredit Bank, Intesa Banking Group, and Clessidra Fund for purchase of 50% share of the company holding 26.19% of Pirelli & C. S.p.A. stake,’ reads the communiqué.

The agreement, which is subject to Russian, Italian and European law, will tighten business relationships between Rosneft and Pirelli. Logically, it will also increase Russian clout in Western Europe.