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Russia's RDIF to loan $696 million to Sistema to settle Rosneft dispute

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Russia's RDIF to loan $696 million to Sistema to settle Rosneft dispute

Russia's RDIF to loan $696 million to Sistema to settle Rosneft dispute
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MOSCOW (Reuters) – The Russian Direct Investment Fund (RDIF) will provide a 40 billion rouble (£517.16 million) loan to the Sistema <AFKS.MM> conglomerate to help settle a dispute with oil producer Rosneft <ROSN.MM>, the fund’s head Kirill Dmitriev said on Wednesday.

Dmitriev told reporters that Sistema-owned retailer Detsky Mir <DSKY.MM> and Bashkirian Power Grid Company will be put up as a collateral for the six-month loan.

Sistema will pay 100 billion roubles to resolve a dispute with Russia’s largest oil producer Rosneft over the Bashneft <BANE.MM> oil company, under a settlement announced by both companies on Friday.

Sistema will make payments in three instalments. First, 20 billion roubles, then 40 billion roubles and a final 40 billion roubles, due on Dec. 29, Feb. 28, and March 30, respectively.

The dispute centred on the Bashneft oil company and pitted powerful Rosneft chief executive Igor Sechin, a close ally of President Vladimir Putin, against Yevtushenkov, a billionaire who some media reports suggest is close to Prime Minister Dmitry Medvedev.

(Reporting by Denis Pinchuk; Writing by Vladimir Soldatkin; Editing by Louise Heavens)

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