Russia's Lukoil Lodges Arbitration Against Sinopec

Russia's No. 2 oil producer Lukoil said on Monday it has commenced arbitration proceedings in London against China's Sinopec over Sinopec's refusal to complete a $1.2 billion deal.

Lukoil had signed a sale and purchase agreement for the sale to Sinopec of a 50-percent stake in Caspian Investment Resources Ltd, a company with various stakes in four hydrocarbon-production projects in Kazakhstan.

"Sinopec has refused to complete the transaction, and Lukoil contends this is in breach of contract," Lukoil said in a statement.
 

Reporting by Vladimir Soldatkin