Morgan Stanley Sells Most of Its Oil Trading Business to Rosneft | Business | The Moscow Times

Morgan Stanley Sells Most of Its Oil Trading Business to Rosneft | Business | The Moscow Times:

"Morgan Stanley has sold the majority of its global physical oil trading operations to Russian state-run oil major Rosneft, becoming the latest Wall Street firm to dispose of a major part of its commodity business.

The deal represents a bold move into the U.S. market by  Russia's top oil producer, which is headed by Igor Sechin, a powerful ally of President Vladimir Putin. The Russian state owns almost 70 percent of Rosneft.

The deal includes more than 100 traders and shipping schedulers in London, New York and Singapore, more than $1 billion worth of oil, and the bank's 49 percent stake in tanker company Heidmar.

The terms of the deal were not disclosed. Morgan Stanley said it was not expected to have a significant impact on its financial results.

The purchase will not include Morgan Stanley's oil storage, pipeline and terminal firm, TransMontaigne, which may help avoid significant scrutiny of the deal in Washington."

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