Under the agreement signed in Banja Luka, NeftegazInKor from the Zarubezhneft Group practically took over all petroleum processing plants in Bosnia-Herzegovina.
It also assumed an obligation to make additional investments to modernise the plants until 2010, which will raise the value of the deal to some 979 million euros.
The aim of the deal is to ensure the processing of 4.2 million tonnes of oil in Bosanski Brod and 130,000 tonnes of other lubricants in Modrica annually.
The Bosnian Serb government has pledged to cover the current debts of those plants, and the Russian side undertook to retain all 1,500 workers.
Legal disputes may occur over Petrol stations given that the Sarajevo-based Energopetrol and Croatia's INA claim that during the 1990s war Petrol illegally confiscated their property.