The Russian government approved the dissolution of the "privatization kolkhoz" in the share capital of Rosneft

The joint company of the Qatar investment fund QIA and the Swiss trader Glencore - QHG Oil, will be disbanded. After that, 18.93% of Rosneft shares will remain on the balance sheet of QIA, 0.57% - at Glencore.
The government commission on foreign investment allowed the Qatar Investment Fund (QIA) to buy a stake in Rosneft from the joint venture QIA and the Swiss trader Glencore - QHG Oil, Interfax reported, citing a source in the government. Similar information was provided to Vedomosti by a federal official.

Interfax reports that the decision was made recently. Whether there were any restrictions on the deal, Vedomosti's interlocutor did not speak.

Now Glencore and QIA own 19.5% of Rosnefi through the Singapore company QHG Oil Ventures on a parity basis. But the amounts invested by the parties since January 2017 were not the same. Glencore spent to purchase Rosneft shares only 300 million euros, and QIA - 2.5 billion euros. The remaining 7.4 billion they borrowed in banks.

Last fall, QHG found a buyer for 14.16% of Rosneft - the Chinese private CEFC. She was ready to pay $ 9.1 billion for a stake in the Russian state-owned company, but the deal broke down due to the economic problems of the CEFC. She contributed only $ 300-400 million to initiate the transaction and was unable to hold the first payment of 20% of the total amount by the end of April 2018. In May of this year, the sellers canceled the deal and decided to "straighten out" the ownership structure of Rosneft shares in proportion to the initial contribution to the capital of QHG

In May, Glencore and QIA decided to withdraw from the consortium, which was established in December 2016 specifically for the purchase of a 19.5% stake in Rosneft. With the dissolution of the consortium, Glencore and QIA will be directly owned by their stakes in the Russian company: 0.57% will remain with Glencore, 18.93% will be held by QIA.

After the dissolution of the consortium, 14.16% of the stake in Rosneft will be transferred to a wholly owned subsidiary of QIA. Such an agreement was concluded and entered into force on May 7. The approval of the Russian government commission on foreign investment was required to complete the sale and "rectification" of the ownership structure.

When Glencore and QIA should close the deal - it is not known, the Glencore representative did not answer Vedomosti's questions, the QIA representative did not get a chance to contact. But Glencore in the report for the first half of 2018 noted that it expects to complete the deal with Rosneft shares in the second half of 2018.