Swiss commodities trader Glencore will retain a 0.6% stake in Rosneft. Credit: NVO.

State-owned sovereign wealth fund Qatar Investment Authority (QIA) is reportedly set to pay $4.23bn for half of a 14.16% stake in Russian oil and gas company Rosneft.

The proposed investment would allow the QIA to become the third-largest shareholder in Rosneft after the Russian Government and UK firm BP.

Swiss commodities trader Glencore will retain a 0.6% stake in Rosneft, Reuters reported.

In September, the Glencore-QIA consortium concluded the transaction, which was announced in May, to divest a 14.16% interest in Rosneft to a wholly owned subsidiary of QIA.

“The consortium originally reached an agreement last year to sell the stake to Chinese conglomerate CEFC China Energy Company.”

According to the deal, QIA holds a direct equity stake of 18.93%.

The consortium originally reached an agreement last year to sell the stake to Chinese conglomerate CEFC China Energy Company.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, the deal was annulled in May after Chinese authorities began investigations against CEFC founder and chairman Ye Jianming in March over suspected economic crimes as part of a wider crackdown launched by President Xi Jinping’s government against corruption charges on businesses.

Glencore and QIA formed the consortium in December 2016 in a bid to acquire a 19.5% stake in Rosneft.

Alongside the cancellation of the deal with CEFC, the consortium partners agreed to dissolve the consortium and take direct ownership of the underlying shares in the oil firm.

Meanwhile, Rosneft has almost tripled its third-quarter net profit to RUR142bn ($2.3bn). The company’s capital expenditure during the period stood at RUR227bn ($3.5bn).

State-owned entity JSC ROSNEFTEGAZ owns 50% of the company, while BP holds 19.75% of shares.