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Morgan Stanley’s Rosneft deal founders

Morgan Stanley’s deal to sell an oil trading business to Rosneft, the state-owned Russian oil group, is close to collapse amid the profound chill in relations between Russia and the US.

Morgan Stanley said on Friday: “In the current environment there can be no assurance that the transaction will close, especially in light of the existing contractual requirement that all necessary approvals be received by year end.”

“We are continuing to operate the business in the ordinary course, and should the deal not close, we would consider a variety of options that take into account the interests of our shareholders, clients and employees.”

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