Murmansk Port

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Pursuant to the Russian Program for privatization of state assets and the subsequernt order of the Russian Committee for the management of state property, No.700, 1992, ports in Rusia could be partially privatized with the government retaining 49% of the shares. In Dec. 1993 the Russian Government by Decree No. 299 set out the process for the establishment of port authorities. The port of Murmansk was transformed into a joint stock company in 1994. The Murmansk port was the largest ice-free port in the northern part of Russia, with a handling capacity up to 7.5 million tons. This was mainly dry cargo such as mining products and apatite concentrate. The port had 20 piers with a maximum depth of 10.5 meters. The port was restructured into two units. A joint stock company handled the commercial activities and the government unit took care of the premises. In February 2012, Russia's largest steam coal miner, Siberian Coeal Energy Company (SUEK), owned by Andrei Melnichenko, acquired 24.9% of the voting shares in SUEK (18.68% of the share capital). The sale agreement was signed on April 17, 0012, by the then-prime minister Vladimir Putin. In October 2012, 34% of the voting shares (25.5% of the share capital) were acquired via competitive selection by a consortium of companies comprising of SUEK and Cyprus-based Alfa capital Holdings (a subsidiary of the Alpha Bank Group). They offered the maximum price of US$75.5 million (Rb2.2 billion) - the starting price was Rb2 billion. As a result, the shareholders of OJSC Murmansk in October 2012 were SUEK holding 49.85 of the voting shares and Alfa capital holding 9.05% of the voting shares. The sale agreement was approved by the Ministry of Finance in December 2012. In December 2012, the Federal Antimonopoly Agency approved the purchase of 49.95% of the voting shares in MCS by EuroChem, a mineral and chemical producer, owned by Andrei Melnichenko. EuroChem purchased the shares from the following private entities: Alfa Capital, and two offshore companies Montague Management which owned 21.72% of the voting shares and Roman Capital Holdings which owned 16.95 of the shares. EuroChem's purchase of shares could not be confirmed as of 1/2013. Therefore percentage private and sponsor fields only include SUEKSu