But Glencore and QIA have now made a decision to sell a 14.16% stake in the Russia-controlled firm to CEFC China Energy at a 16% premium to the 30-day volume weighted average, which should ensure that they net a small profit on their original investment.
Glencore PLC and Qatar have agreed to sell the bulk of their almost 20% stake in Russian oil giant PAO Rosneft to a Chinese energy company in a deal worth about $9 billion. A CEFC spokesman said the company would pay $9.1 billion.
The deal comes as the United States imposes a new round of economic sanctions on Russian Federation against its annexation of Crimea and an incursion into east Ukraine in 2014.
After the sale, Glencore confirmed it would hold 0.5% of Rosneft while the Qataris would have a 4.7% stake.
As a result of a series of oil deals, Russian Federation now tops the list of China`s oil suppliers, surpassing even its biggest rival Saudi Arabia in the Chinese market, according to the International Energy Agency.
The December acquisition of a stake in Rosneft by QIA and Glencore was billed by the Kremlin as the privatisation of the Russian oil giant, at the time.
Rosneft is run by Igor Sechin, a close ally or President Vladimir Putin, who awarded special state decorations to the head of Glencore Ivan Glasenberg for executing the transaction. The complex deal involved more than 7 billion in debt from backers that were never fully disclosed. Intesa said its loan would be fully repaid with proceeds from the sale. Final negotiations and regulatory approvals are needed before the exchange goes through, however.
Sechin told reporters CEFC would get access to Rosneft`s oil fields and petrochemical projects in East Siberia to guarantee bigger synergies.
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