Russia sold a 10.2-billion euro ($11 billion) stake in its largest oil producer to commodity trader Glencore Plc and Qatar’s sovereign wealth fund in a triumph for President Vladimir Putin, who announced the deal on state television personally.
In a surprise deal that comes despite U.S. and European Union sanctions against Russia, the buyers will share a 19.5 percent stake in state-run Rosneft PJSC, which pumps almost 5 million barrels a day.
The biggest foreign investment in Russia since the crisis in Ukraine, it also marks a stunning return to deal-making for Glencore Chief Executive Officer Ivan Glasenberg little more than a year after his company was forced to raise cash from shareholders.
Glencore said in a statement it would commit 300 million euros in equity, with the rest coming from the Qatar Investment Authority -- itself Glencore’s largest shareholder -- and bank financing. Glencore said the deal was still in “final-stage negotiations” and would likely close in mid-December.
The QIA declined to comment. Putin put the total deal value at 10.5 billion euros. It wasn’t immediately clear why that figure differed from the price Glencore cited.
Read more at Bloomberg.