ST. PETERSBURG, June 13 (RIA Novosti) - Russia's industry and energy minister said Tuesday he saw no reason to merge state oil pipeline monopoly Transneft (RTS: TRNFP) and oil transport company Transnefteproduct.
Viktor Khristenko said both companies had their own projects that should not be exposed to risks.
The president of LUKoil, Russia's no.1 crude producer, Vagit Alekperov said last month that a merger could reduce transportation costs for oil and oil products, and help to accumulate funds to jointly develop major transport routes, thereby avoiding duplication of infrastructure.
Khristenko said last month he did not rule out a merger in the future.
"In this case any corporate restructuring is of course possible. But this does not mean the physical merger of transport systems," Khristenko told journalists in St. Petersburg. "No decision has been made so far."
The government owns 75% of Transneft stock or 100% of its voting shares. Transneft's charter capital is 6.22 million rubles (about $216,000). Preferred shares are held by private owners. Transnefteproduct is a 100% state-owned company with authorized capital of 1.26 billion rubles ($46.78 million).
