Investors cheer plan for Germany's RWE to sell oil unit to Russian-linked investment group

BERLIN – Shares in German energy company RWE AG are rising after it announced plans to sell its oil & gas exploration and production division to an investment vehicle linked to a Russian billionaire.

RWE said Sunday it plans to sell its RWE Dea unit to LetterOne Group, an international investment arm of Mikhail Fridman’s Alfa Group. The deal values the business at about 5.1 billion euros ($7.1 billion); the two sides have yet to conclude a sale agreement, which would require approval by several countries’ authorities.

The news comes amid tensions between the European Union and Russia over Ukraine.

German officials wouldn’t comment on the deal but Economy Ministry spokeswoman Tanja Alemany said they “don’t fear any impact on Germany’s supply security.”

RWE shares rose 1.2 per cent Monday to 28.81 euros.