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Russia's Rosneftegaz closes Rosneft privatisation deal

Published 04/01/2017, 18:34
Updated 04/01/2017, 18:40
© Reuters. Shadow of worker is seen next to logo of Russia's Rosneft oil company at central processing facility of Rosneft-owned Priobskoye oil field outside Nefteyugansk
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MOSCOW (Reuters) - Russian state holding company Rosneftegaz on Wednesday closed a deal with the Qatar Investment Authority (QIA) and commodities trader Glencore (L:GLEN) to sell a 19.5 percent stake in state-owned oil major Rosneft (MM:ROSN), Rosneft said.

The privatisation deal, which Rosneft Chief Executive Igor Sechin called the largest in Russia's history, was announced by Rosneft in a meeting with President Vladimir Putin in December.

Its success suggests the lure of taking a share in one of the world's biggest oil companies outweighs the risks associated with Western sanctions imposed on Russia over the conflict in Ukraine.

"The technical procedures for closing (the deal) required the preparation and signing of more than 50 documents and agreements," Rosneft said in a statement. "All this reflects the unprecedented complexity of the deal."

© Reuters. Shadow of worker is seen next to logo of Russia's Rosneft oil company at central processing facility of Rosneft-owned Priobskoye oil field outside Nefteyugansk

Italy's Intesa Sanpaolo (MI:ISP) said on Tuesday it would provide a loan for up to 5.2 billion euros ($5.4 billion) to help the QIA and Glencore purchase the stake.

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