Jones Day secures $31bn Russian JV deal

Jones Day Gouldens has scooped the lead role on Russia’s largest ever corporate transaction, the $31.2bn Russian joint venture between oil giants BP and TNK.

A team led by Washington DC-based partner Vladimir Lechtman advised TNK and its shareholders, the Alfa Group and Access-Renova (AAR), on the deal.

Lechtman, who moved from Texas giant Akin Gump Strauss Hauer & Feld in March this year, is a long-term adviser of AAR and has brought some of the company’s most lucrative work with him.

The deal will also be regarded as the kind of high profile European work that Jones Day was hoping to handle following its takeover of respected London firm Gouldens earlier this year.

The joint venture sees BP and AAR combine their Russian and Ukraine oil and gas businesses as TNK-BP, owned 50/50 by the two stakeholders.

TNK-BP becomes the 10th largest oil company in the world, with oil fields mainly in West Siberia and the Volga Urals holding reserves of 5.2 billion barrels.

Lechtman commented: “This is a major transaction in Russian history as it is the first time that a major outside company has taken an equal stake in a Russian company. The cultural mixture of Russian shareholders working with a company such as BP created an interesting dynamic.”

Top five London firm Linklaters advised long-term client BP through corporate partner Lee Taylor.