Consortium to help fund Rosneft deal
Financing will be backed by Glencore and Qatari sovereign wealth fund’s shares in the oil group
Moscow — Glencore and Qatar’s sovereign wealth fund are using €2bn in equity and $7.8bn in financing from a bank consortium led by Italian lender Intesa Sanpaolo to buy their stake in Russian oil company Rosneft. The financing would be backed by the two companies’ shares in the oil company, Rosneft said on Saturday. Glencore had already said on Wednesday that it would invest €300m in equity, leaving Qatar, the largest shareholder in the commodities trader, shouldering about $2.7bn for the 19.5% stake in the Russian oil company. Glencore said on Saturday that Russian banks would guarantee up to €1.4bn of financing, without disclosing their names. The announcement on financing marks a step forward in what was a surprise deal struck despite US and EU sanctions against Russia. It is the largest foreign investment in Russia since the crisis in Ukraine in 2014 and has been widely seen as a triumph for both Rosneft CEO Igor Sechin and Russian President Vladimir Putin who announced Rosneft’...
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