Germany-based RWE has said it will complete a €5bn agreement to sell its DEA oil and gas unit to Russian businessman Mikhail Fridman, despite the UK Government’s move to block part of the sale.
The company plans to complete the sale on 2 March to LetterOne, and will re-acquire the firm if the European Union (EU) or the US impose sanctions on the buyer.
RWE Dea said the deals provide for a transfer of the entire RWE Dea group, including the UK business.
"Only if the EU or the US impose sanctions on LetterOne or its owners prior to the first anniversary of the completion will RWE have to re-acquire the UK business."
The UK Government said it will not support the agreement in its current form.
The UK Department of Energy and Climate Change (DECC) said it had concerns about the effect possible future sanctions imposed on LetterOne may have on the continued operation of the twelve oil and gas fields.
Such sanctions may result in serious health and safety and environmental risks, the DECC said.
RWE Dea operates in the field of exploration and production of natural gas and crude oil. It has production facilities in Germany, the UK, Norway, Denmark and Egypt.
The company holds licences in Algeria, Ireland, Libya, Mauritania, Poland, Turkmenistan and Trinidad & Tobago.