The head of the Chinese investor of Rosneft was arrested

According to media reports, Xi Jinping personally ordered the detention of the founder of CEFC China Energy.
South China Morning Post reported the arrest of one of the largest Chinese entrepreneurs, the founder of the multibillion-dollar financial and oil conglomerate CEFC China Energy E Jianmin. With reference to informed sources, the newspaper notes that Mr. E was arrested on the orders of Chinese President Xi Jinping. Official sources and CEFC China Energy do not comment on this situation. Recall that in September last year the company became a minority shareholder of Rosneft, acquiring 14.16% of the shares. However, a transaction that is not yet completed may be broken if CEFC does not pay for the shares in the next few days.

According to four sources of the South China Morning Post, the founder of the financial and energy conglomerate CEFC China Energy, who last fall entered into a deal to buy 14.16% of Rosneft, E Jianming was detained on February 16 and taken to law enforcement for interrogation. Chairman of the People's Republic of China, Xi Jinping, ordered the arrest of the businessman, the newspaper writes. After the publication of this news, CEFC shares collapsed, which is why its market value was reduced by $ 630 million. The reasons for the arrest of E Jianmin are not reported either by the Chinese authorities or by the CEFC.

"It is an astonishingly rapid decline for the entrepreneur, who also soared to the top of big business in just five years," the paper described the arrest of E Jianmin. He founded his company CEFC China Energy in 2002, when he was 26 years old. What he did before, in exactly little is known. According to some reports, he traded wood products and ran mini-hotels, and then unwound by buying a cheap property from a certain businessman from Hong Kong for several properties. Then, as Mr. E told Fortune magazine several years ago, he purchased from the auction oil assets that had been confiscated from the leader of a criminal group smuggling in his native Fujian province. This purchase was paid for by loans from Chinese state-owned banks and private loans from investors from Hong Kong and Fujian Province. After this case, E Jianmin went up the hill.

Mr. E developed such an active entrepreneurial activity that, before reaching 40 years, managed to build a business empire, whose revenues in 2015 reached 263 billion yuan. About 60% of revenues are accounted for by oil and gas. Together with the state, the influence of the entrepreneur also grew. In 2016 Fortune Magazine included Mr. E in the rating "40 to 40" among the 40 most influential young people, where he, in terms of his influence in the world, outstripped Emmanuel Macron.

In the past two years, CEFC China Energy has actively contracted and bought assets around the world: oil and gas fields, oil and gas storage facilities, terminals, offices, banks, etc.
In July 2015, for example, it signed an agreement with Gazpromneft on cooperation in three fields in Eastern Siberia, in December 2015 bought out 51% in Romanian KMG International for $ 680 million, in May 2016 - 40.1% in Czech J & T Finance for $ 1.1 billion, in December of the same year, expanded the oil storage in Hainan, investing $ 1.2 billion, in February last year, acquired 4% in the oil and gas concession Abu Dhabi National Oil for $ 888 million.

The largest transaction for CEFC China Energy - and also the largest foreign acquisition for Chinese companies since 2012 - was the purchase of a 14.16% stake in Rosneft from the Qatar Qatar consortium and the Glencore Swiss trader in September 2017 for $ 9.1 billion. The deal was not completed , since the CEFC has not yet raised sufficient funds, and, according to the Chinese edition of Caixin, it will be disrupted if the company does not pay for the shares in the next few days.

The conclusion of such large-scale transactions repeatedly raised questions about the extent to which the CEFC is close to the authorities of the PRC and where it takes such funds. "The biggest mystery of the last few years - where did the CEFC take such money. No one could answer this question. I think it's time to get an answer, "- the agency Jefferies Group, Labana J., quotes Bloomberg agency as saying.

Recall, last fall, the US Justice Department brought charges against the CEFC-funded think tank, the China Energy Fund Committee. At the end of November 2017 in New York, the head of the center, the former head of the internal political department of Hong Kong, Patrick Ho, was detained. According to the investigation by the US authorities, Mr. Ho, together with former Senegalese foreign minister Sheikh Gadio (also detained in New York), in 2014, developed a large-scale corruption scheme for bribing high-ranking officials in Chad and Uganda. According to the statement of claim, they offered a bribe of $ 2 million to President Chad Idris Debi in exchange for the right of oil production in the country, and $ 500 thousand was transferred to the account of Ugandan Foreign Minister Sam Coutes, making all of these payments as donations.