18th Jan 2017 10:51
LONDON (Alliance News) - The acquisition of a substantial stake in Russian state-owned oil and gas firm Rosneft by Glencore PLC and the Qatar Investment Authority was achieved with significant help from a Russian state bank that is currently under Western sanctions, the Financial Times reported.
The FTSE 100 multi-commodity giant and Qatar's sovereign wealth fund struck a deal to buy a 19.5% stake in Rosneft, joining the shareholder register alongside BP PLC's similar stake, for a combined total of USD10.80 billion last month.
The FT on Wednesday, citing documents filed with regulators in Singapore, said Russian bank VTB supplied over USD10.00 billion in December to the joint venture vehicle being used by Glencore and QIA to make the investment, named QHG Shares Ltd.
The FT said Russian business outlet RBC first reported the existence of the bridging loan.
The previously undisclosed role played by VTB in the complex transaction raises questions about the involvement of the state in a deal that Moscow hailed as a sign of foreign appetite for Russian assets in spite of US and European sanctions, the FT said.
Russian President Vladimir Putin said previously that Russian state-run banks should not bankroll such transactions.
Rosneft spokesman Mikhail Leontiev, according to the FT, told Interfax that the transaction was intended to avoid "all sorts of excesses" including "volatility on the currency market." VTB declined to comment to the FT.
https://www.ft.com/content/15440cd6-dcb3-11e6-9d7c-be108f1c1dce
By Joshua Warner; [email protected]; @JoshAlliance
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