(MENAFN) Rosneft, Russia's biggest crude oil producer, might be forced to back out from a deal to buy Morgan Stanley's oil trading unit due to Western sanctions, which will make it virtually impossible to finance day-to-day operations, The Peninsula Qatar reported.
Morgan Stanley 's oil trading unit currently trades actual barrels of oil and Rosneft has agreed to buy the unit last December but since then, the United States and the European Union have imposed wide-ranging sanctions on Russia's energy sector as a punishment on Moscow for its incursion into Ukraine.
Rosneft has enough cash to buy the Morgan Stanley unit, which is set to be sold at a price ranging between USD300 million to USD400 million, but to operate day-to-day, the business will require billions of dollars in funding , which will be difficult to secure due to the sanctions.
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