• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 6 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 2 hours Socialists want to exorcise the O&G demon by 2030
  • 8 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 2 days Is Natural Gas Renewable? I say yes it is.
  • 21 hours Cheermongering about O&G in 2019
  • 2 days Making Fun of EV Owners: ICE-ing Trend?
  • 1 day Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 13 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 3 hours Russian Message: Oil Price War With U.S. Would Be Too Costly
  • 2 days Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 2 days North Sea Rocks Could Store Months Of Renewable Energy
  • 5 hours Oil CEOs See Market Rebalancing as Outlook Blurred by China Risk
  • 3 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
BP Bets Big On The Caspian Sea

BP Bets Big On The Caspian Sea

British Petroleum’s wells are targeting…

A Logical Move From An Inconsistent Tesla

A Logical Move From An Inconsistent Tesla

It seems that Musk and…

$5.6B Loan Approved For Glencore, Qatar Rosneft Stake Buy

Rosneft HQ

Italy’s Financial Security Committee has approved a $5.6-billion (5.2-billion-euro) loan from Intesa SanPaolo to Glencore and the Qatar Investment Authority for the acquisition of a 19.5-percent stake in Rosneft.

The deal, first announced in December and confirmed this January, was valued at $11.3 billion (10.5 billion euros), of which Glencore agreed to contribute some $324 million, and the rest was forked out by the Qatar partner, through loans.

The Intesa loan was reviewed by the Financial Security Committee for possible violations of the European Union sanctions against Russia. The body, however, which includes representatives of Italy’s foreign, justice, and finance ministries, as well as the financial police, the central bank and the anti-mafia authorities, found no violations. Rosneft, as well as its chief executive, Igor Sechin, are among the sanctions targets.

According to Italian sources cited by Reuters, Intesa, Italy’s largest lender, agreed to provide the money for the acquisition in early December, but the FSC review was delayed because the new Italian government was sworn in later in the month. As a result, Russia’s VTB bank provided a bridge loan until the Italian money became available. VTB, by the way, is also under sanctions, but the FSC said that its participation in the deal did not violate these.

Related: The Oil Market Is At A Major Turning Point

Russia’s budget received about $11.67 billion from the deal, including $300 million in extra dividends. Rosneft, for its part, got an indirect stake in Glencore of 0.54 percent. For Glencore, the deal was a way to get ahead of its main competitor, Trafigura, which is well received in Moscow, and deepen its own ties in Russia. For the Qatar Investment Authority, the acquisition is part of its investment strategy.

The deal took many observers by surprise, as expectations were that such a substantial stake in one of the world’s biggest crude oil producers would rather be sold to a domestic investor.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News