President Vladimir Putin has given Italian energy utility Enel the green light to sell a majority share in its Russian unit to oil major Lukoil and investment fund Gazprombank-Frezia, according to a presidential decree issued on September 30.

The deal’s completion has been complicated by a previous decree issued in August, which prohibits foreign firms from closing the sale of their assets without Putin’s direct approval.

“Enel learned about the approval of the sale of its stake in Enel Russia to Lukoil and Gazprom-Frezia fund and informs that it will proceed with the transaction in the coming days,” a company spokesman for Enel told Reuters.

Enel announced the deal in June, under which it will transfer a 56.4% shareholding in Enel Russia for €137mn ($134mn). Enel Russia controls some 5.6 GW of conventional power generation capacity plus an additional 300 MW of wind capacity at varying stages of development.

If you’d like to read more about the key events shaping the former Soviet Union’s oil and gas sector then please click here for NewsBase’s FSU Oil and Gas Monitor.

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