Gazprom's Sibneft Acquisition Gives More Power To Kremlin

Russian gas monopoly Gazprom has approved its $13.1bn takeover of the fifth largest Russian oil firm Sibneft.

The deal will give the Kremlin control over one-third of Russian oil output.

Gazprom chairman Dmitry Medvedev said the deal would increase competitiveness at the world's largest gas producer, and a key supplier to Europe.

It also said the takeover would allow it to compete with global majors on the world's oil markets.

Gazprom had signed a binding agreement to buy 72.663% of Sibneft's shares from Millhouse Capital - an investment vehicle belonging to Mr Abramovich, who also owns Chelsea football club.