RIA Novosti reported that Germany E On Ruhrgas, the main foreign shareholder in Russia gas monopoly Gazprom plans to sell its 3.5% stake in the gas giant to national development bank Vnesheconombank in December.

E ON shareholding in Gazprom is currently estimated at USD 4.5 billion proceeding from the value of Gazprom stock on the Russian RTS stock exchange recently. The parties expect the deal to be approved by Russia Prime Minister Mr Vladimir Putin and Germany Chancellor Ms Angela Merkel who will meet on Friday to discuss bilateral trade and economic cooperation.

A source close to E On said "The stake must be sold at a price slightly above the market value so that Gazprom's capitalization is not affected, adding that for this reason the stake could not be sold directly on the market or to outside parties.”

Other sources familiar with the matter confirmed that Vnesheconombank, the holder of about two percent in Gazprom was in talks on the issue.

The deal is expected to improve E On financial position. E On Chief Executive Officer Mr Johannes Teyssen said earlier in November that the company planned to raise EUR 15 billion in 2011 to 2013 from asset sales.

(Sourced from RIA Novosti)