The UK government has threatened to prevent the full sale by RWE, the German utility, of its oil and gas division to L1 Energy, an investment vehicle controlled by Mikhail Fridman, a Russian billionaire. L1 Energy completed the takeover of RWE’s oil and gas division, which includes gasfields in the North Sea, for £3.7 billion on 2 March 2015. Edward Davey, Secretary of State for the Department of Energy & Climate Change, has raised concerns about the effects that any tightening of sanctions on Russia may have on the UK gasfields. As a result, the UK government may force Mr Fridman to sell the North Sea assets, which make up roughly 20% of the deal. L1 Energy has threatened to take legal action against the UK government if the transaction is blocked.

Independent Article