Lukoil has commenced arbitration proceedings against China’s Sinopec after claims the company refused to complete a sale and purchase agreement.
The company said it signed a deal in April last year for the sale of a 50% stake in Caspian Resources for $1.2billion.
A spokesman said: “Sinopec has refused to complete the transaction, and LUKOIL contends this is in breach of contract.
“Lukoil has today commenced arbitration proceedings in London against Sinopec for substantial damages.”
Caspian Investment Resources is a company with various stakes in four hydrocarbon production projects in Kazakhstan.
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