Russian state-owned energy giant Rosneft has submitted details of a deal to buy an oil trading unit of Morgan Stanley to a confidential U.S. committee that evaluates national security risks, the Wall Street Journal reported, citing a source familiar with the matter.
Morgan Stanley agreed to sell the majority of its global physical oil trading operations to state-owned Rosneft in December, before Russia launched an incursion into Ukraine's Crimean peninsula.
A Morgan Stanley spokesman declined to comment.
The investment bank said in May it planned to proceed with the sale despite the crisis in Ukraine.
Industry watchers have expressed doubts the deal will go through due to Western sanctions on Russian officials, including Rosneft's head Igor Sechin, over the Ukraine crisis.
The sanctions apply only to Sechin, not to Rosneft.
"We're strategically committed to that transaction ... and we plan to close it," Morgan Stanley CEO James Gorman told reporters after its annual shareholder meeting on May 13. He said then he would not speculate on whether geopolitical conditions would deteriorate.
Rosneft also said in April that it aimed to complete the deal in the second half of 2014.
See also:
Ex-Morgan Stanley Chief Exits Rosneft Board
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.