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Qatari fund becomes strategic partner of Russia’s Rosneft

Qatari fund becomes strategic partner of Russia’s Rosneft
An agreement which provides for the acquisition of an 18.93 percent stake in Russian oil giant Rosneft by Qatar sovereign fund (QIA) is strategic, according to company spokesman Mikhail Leontyev.

He told RIA Novosti that QIA will become a major shareholder in Rosneft, along with the British oil company BP. Under the deal which was announced Friday, QIA will own 18.93 percent of Rosneft, becoming the third-largest shareholder after the Russian state, which holds 50 percent and, BP with 19.75 percent.

“A very strategically important deal took place... Qatar, represented by the QIA fund, becomes the direct shareholder and strategic partner for Rosneft,” Leontyev said, adding that the Russian company is satisfied with the decision.

“This is a completely different level of relations and cooperation. The market will see a range of bilateral international projects that we are going to develop together…” He explained that from the investment point of view, QIA is a very good partner with “obvious resources.”

In 2016, the consortium of QIA and the Swiss commodity trader Glencore bought a 19.5 percent stake in Rosneft. Later, they announced the sale of 14.16 percent of the shares in that stake to the Chinese energy company CEFC. The value  of the transaction was estimated at $9.1 billion.

On Friday, the agreement with CEFC has been terminated, with the stake intended for sale to the Chinese firm to be transferred to a subsidiary of QIA. The companies have also announced dissolving the consortium. Glencore will receive €3.7 billion as a result of the transaction and keep the 0.57 percent stake in Rosneft. According to Leontyev, Glencore has successfully completed its participation in the transaction and, as a trader, it has other tasks.

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