Russia wants to sell 19.5% of Rosneft to China and India

rosneft

As reported by Bloomberg, Russia intends to sell 19.5% stake in the state-owned company Rosneft to companies from China and India for 700 billion rubles (approx. $10 billion – RRT).

According to a source of the agency, the Russian side “would prefer a joint deal with the two countries”. If these plans are implemented, it will be a record deal for the privatization of Russian state property.

The sale of 19.5% of Rosneft will have geopolitical importance for Russia, the agency said.

China and India have publicly expressed interest in buying a stake in Rosneft, but so far none of the parties stated that it was considering the possibility of a shared transaction,” the agency indicates.

Recently, a consortium of Indian companies Oil India, Indian Oil, and Bharat Petro Resources purchased a 23.9% stake in the Vankor project. This was announced on June 17 during the signing of an agreement for the purchase of up to 23.9% of Vankorneft at SPIEF 2016.

“Closing the transaction will be finished after receiving of necessary regulatory and other approvals,” the company said.

After closing, the consortium representatives will join the Board of Directors of Vankorneft. The Rosneft will retain the majority stake in the project, control over the operations, as well as 100% control over common infrastructure cluster (including the pipeline Vankor – Purpe).

On May 31 Rosneft has closed the sale of 15% of Vankorneft to Indian company Videsh. The deal amounted to $1.27 billion.

Source: rns.online