12 Sep 2017 13:53

Deal for CECF to buy Rosneft stake could need clearance by govt commission - FAS

MOSCOW. Sept 12 (Interfax) - The deal for China's CECF to buy a stake in Rosneft might need to be approved by the government's commission on foreign investment.

"As Rosneft is a strategic enterprise, I think this will need [clearance from the foreign investment commission]," Igor Artemyev, head of the Federal Antimonopoly Service (FAS), told reporters.

"Rosneft is most definitely a strategic company, so any change...There's no official paperwork yet, and we don't know all the details - we need to see how much will be held by foreigners. As they are strategic themselves, operations with shares might need to be looked at by the commission on certain conditions," he said.

The law states that deals to buy enterprises with the rights to fields of strategic importance are referred to the commission if more than 5% is being sold.

The consortium of Glencore and Qatar Investment Authority (QIA) has signed an agreement with China Energy Company Limited (CEFC) to sell a 14.16% stake in Rosneft to CEFC. The transaction is conditional on the consortium electing to proceed following the completion of final negotiations and on receipt by CEFC of all necessary regulatory approvals. Following the transaction, Glencore and QIA will retain an economic interest in Rosneft shares commensurate with their original equity investment announced in December 2016, which amounts to approximately 0.5% and 4.7% respectively.