Chinese conglomerate CEFC will buy a 14.16 per cent stake in Russian oil producer Rosneft from a consortium of Glencore and the Qatar Investment Authority in a move that further strengthens the energy partnership between Moscow and Beijing.
CEFC China Energy has grown in recent years from a niche oil trader into a sprawling energy conglomerate and the transaction will allow China, the world's second largest energy consumer, to boost cooperation with the world's top oil producer.
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The deal comes as the US imposes a new round of economic sanctions on Russia making it difficult for large Western firms like Glencore to develop partnerships and increase ties with state-owned firms such as Rosneft.
Glencore said in a statement that CEFC will buy shares at a premium of around 16 per cent to the 30-day volume weighted average price of Rosneft shares.
The deal has yet to close pending final negotiations and on receipt by CEFC of all necessary regulatory approvals, Glencore said.
Glencore and the Qatar Investment Authority, which together bought a Rosneft stake of around 19.5 per cent last year, will retain stakes of 0.5 per cent and 4.7 per cent respectively, Glencore said.
