Russia sells stake in Rosneft to Glencore, Qatar

Rosneft, Russia’s state-owned oil company, is selling a 19.5 percent stake in the company to a consortium comprising of Glencore and Qatar Investment Authority.

According to Glencore, the consortium will pay some 10.2 billion euros for the deal. Russian government’s website, however, shows a price of 10.5 billion.

Rosneft head Igor Sechin met with Russian president Vladimir Putin on Wednesday to discuss the deal.

Putin expressed satisfaction with the deal, and congratulated Seching on making the sale.

„The deal was made on an upward trend in the price of oil and it therefore reflects on the value of the company itself,” Putin said.

The company’s controlling stake – over 50 percent – remains in the hands of the government.

According to Glencore, the company will commit €300 million in equity with the balance of the consideration for the acquisition of the Rosneft shares to be provided by QIA and by non-recourse bank financing.

The deal, Glencore says, also entails a new 5 year offtake agreement with Rosneft representing a sizeable additional 220,000 bbls/day for the Glencore Marketing business.