Enel SpA (“Enel”), through its wholly-owned subsidiary Enel Investment Holding BV, reached an agreement with Itera, a wholly-owned subsidiary of the Russian oil & gas company Rosneft, for the sale of its 40% stake in Artic Russia BV, which in turn owns 49% of the share capital of SeverEnergia (the aggregated interest of Enel in the latter being equal to 19.6%).

The agreement was signed by Fulvio Conti, CEO and General Manager of Enel, and Igor Sechin, President and Chairman of the Management Board of Rosneft.

The consideration of the transaction amounts to 1.8 billion USD which will be paid in cash upon closing. The completion of the transaction is subject to the applicable antitrust clearance, other customary conditions, and waivers from other relevant entities.

“This transaction is part of Enel’s disposal plan announced in March 2013 – commented Fulvio Conti, on the sidelines of the signing ceremony - and confirms our ability to deliver on the Group’s targets. This disposal realizes the full value of our investment in upstream gas as we have secured our future gas needs through long-term contracts with key Russian suppliers, including Rosneft. Russia remains a strategic country for us as we will continue to operate in power generation and sales”.

Enel entered the Russian market in 2004 as the first private operator in the power sector. In the upstream segment, Enel owned a 19.6% stake in the SeverEnergia consortium with Novatek, GazpromNeft and Eni.
Enel also owns a 56.43% stake in Enel OGK-5, a generation company with four power plants with a capacity of 9,007 MW, located in the fastest growing areas of the country, including two newly built combined cycle plants for a total capacity of 820 MW.
In the sales segment, Enel owns 49.5% of RusEnergoSbyt, an important electricity trader in Russia, with sales of 52 TWh posted in 2012.

About SeverEnergia
SeverEnergia is a gas production joint venture with assets in Yamal-Nenets Autonomous Region of Russia. 51% of its share capital is held by Yamal Development, a joint venture of Novatek and Gazprom Neft established on a parity basis. The remaining 49% stake is held by Arctic Russia B.V., a joint venture between Italian Enel and Eni, where the parties hold 40% and 60% respectively. SeverEnergia owns four license areas. Proven and probable reserves stand at 7.3 billion boe.

About Rosneft
Rosneft is the leader of Russia’s petroleum industry, and ranks among the world’s top publicly traded oil and gas companies. The Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs. Rosneft has been included in the Russian Government’s List of Strategic Enterprises and Organizations. The state holds 69.50% in the Company (through OJSC ROSNEFTEGAZ), while approximately 10% of shares are in free-float.

About Enel
Enel is Italy’s largest power company, and Europe’s second listed utility by installed capacity. It is an integrated player, selling power and gas to around 61 million customers. Enel operates in 40 countries worldwide, with a net installed capacity of approximately 98,000 MW and about 74,000 employees.