Russian state holding company Rosneftegaz has signed a deal with the Qatar Investment Authority (QIA) and commodities trader Glencore to sell a 19.5 percent stake in state-owned oil major Rosneft.
The deal was announced by Rosneft Chief Executive Igor Sechin in a meeting with President Vladimir Putin on Wednesday.
Its success suggests the lure of taking a share in one of the world's biggest oil companies outweighs the risks associated with Western sanctions imposed on Russia over the conflict in Ukraine.
Rosneft said the Russian state budget will receive 710.8 billion roubles ($11.37 billion) from the sale, including 18.4 billion roubles in additional dividends from Rosneftegaz. It said the additional dividends from Rosneftegaz were due to a change in Rosneft's own dividend policy.
Italy's Intesa and a syndicate of banks are to provide Qatar and commodities trader Glencore with 7 billion euros of financing to buy the stake in Rosneft, a source said on Sunday.
Intesa will provide "significantly over 50 percent" of the financing, while Glencore will hedge the bulk of its stake in Rosneft, the source added.
Rosneft is preparing to become a shareholder in the Zohr gas project and expects Qatar and Glencore to be partners for many, many years, the source also said.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.