MOSCOW (AP) – Commodities giant Glencore and Qatar’s sovereign wealth fund have together acquired a 19.5 percent stake in Russia’s top state-controlled oil company, Rosneft, in a deal worth 10.5 billion euros ($11.3 billion), officials said Wednesday.
The long-planned sale is part of the Russian government’s efforts to sell some state assets to help balance the budget amid a two-year recession.
President Vladimir Putin described the deal as the largest in the global energy market this year. Speaking at a televised meeting with Rosneft CEO Igor Sechin, he noted that the deal follows a rally in global oil prices following OPEC’s decision to cut production. “It’s a very good achievement,” Putin said.
Russia has agreed to cut its output in sync with OPEC, and will attend a meeting with the cartel members on Saturday to discuss specifics.
The state will retain a controlling stake in Rosneft, 49 percent of which now belongs to private investors. BP already owns 19.75 percent of Rosneft.