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Monday, December 22, 2014

Rosneft calls off purchase of Morgan Stanley's oil trading arm, (NYSE: MS)

Russia's top oil producer Rosneft said on Monday that a deal to acquire an oil trading business from Morgan Stanley has been terminated due to a refusal by regulators in the United States to clear it."Having invested substantial efforts in the deal, the parties regret that it could not be completed. Despite this, the parties continue to cooperate in other spheres," said Rosneft, in which BP owns almost 20 percent.The termination of the deal is yet another blow for Rosneft after its partners, including ExxonMobil, withdrew from projects to develop Arctic offshore oil deposits following the introduction of Western sanctions over the Ukraine crisis.The deal was initially agreed in December 2013. But since then the West has introduced numerous rounds of sanctions on Russia while the price of oil has plummeted by almost a half from a June peak.

Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS remained unchanged at $38.51. In the past year, the shares have traded as low as $28.31 and as high as $38.63. On average, 10132700 shares of MS exchange hands on a given day and today's volume is recorded at 4518.