The largest private sector consumer services company in Russia, Sistema, has acquired minority shareholdings in seven oil and energy companies in the Republic of Bashkir in the Ural Mountains.
Sistema has acquired 19.9% of each of Novoil, Ufimsky, Ufaneftekhim, Bashneft and Ufaorgsintez, 18.57% of Bashnefteproduct and 10.08% of Bashkirenergo for a total cash payment of $502.9 million.
Collectively the companies comprise the majority of the energy sector in the region and are engaged in oil exploration and extraction, oil refining, petrochemical production and energy production and distribution. Bashkirenergo produces and distributes electricity and heating for petrochemical manufacturers and oil refineries, chemical, agricultural and transportation companies as well as residential consumers, controlling the local electricity supply and 80% of the heating distribution market.