Gazprom's head Alexei Miller and Eni CEO Paolo Scaroni signed an agreement in Moscow on Tuesday which will see the Russian energy giant buy back a 20% stake in its oil arm, Gazprom Neft.
"We purchased these shares at an auction for $3.7 billion. We had to repay a loan for two years at 9.4% per annum and pay dividends," Scaroni said.
According to Scaroni, Eni spent $4.2 billion on the asset - the same sum paid by Gazprom to repurchase the 20% stake.
The Italian company acquired the 20% stake in Gazprom Neft two years ago at liquidation auctions of former-oil giant Yukos, whose founder Mikhail Khodorkovsky is serving an eight-year prison term for fraud and tax evasion.
Gazprom Neft is Russia's fifth-largest oil company with 77.66% of its stock held by Gazprom and 20% by Eni. Gazprom Neft posted a net profit of $5.2 billion in the first nine months of 2008.
