A consortium of Glencore and Qatar’s sovereign Fund bought a 19.5% stake in Rosneft


Moscow. 7 Dec. The head of “Rosneft” Igor Sechin reported on Wednesday the President about the completion of the transaction on privatization of 19.5% stake in Rosneft, said the press Secretary of the President Dmitry Peskov. The amount of the transaction amounted to approximately 10.5 billion euros.

“Buyers and strategic investors became the consortium of the companies Glencore and the Qatari sovereign Fund,” – said Peskov. Putin instructed the head Sechin to discuss with the government and Central Bank action scheme for conversion to avoid exchange rate fluctuations.

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“The President noted that in the coming days in the country will receive a large amount of currency, and in order to avoid any fluctuations, it is necessary to provide an appropriate system of conversion. To do this, the President instructed Sechin to work out an appropriate scheme of action for conversion by the government and the Ministry of Finance and the Central Bank”, – said Peskov.

Ownership structure

Glencore and Qatar Foundation consortium owned in shares of 50%, said Igor Sechin at the meeting with Vladimir Putin.

“In the framework of the implementation of the sales we have conducted commercial negotiations with more than 30 companies, funds, professional investors and financial institutions of Europe, America, the Middle East, the Asia Pacific region. Today I report to you on the completion of negotiations, and the signing of the comprehensive privatization transactions – subject to the “Bashneft” is more than 1 trillion rubles, which will go to the budget. Including 19.5% of “Rosneft” to 10.5 billion euros,” – said Sechin.

According to him, the consortium buys the shares for debt and equity, purchase loan organizes one of the largest banks in Europe.

“Payment of funds to the state budget will be made at the expense of own means, and at the expense of the involved credit financing, organized one of the largest European banks – said Sechin.

Not portfolio investment

According to Sechin, the deal others will follow. “The deal is not just portfolio investment, and strategic, and has additional features, such as concluding long-term supply contract with Glencore, the coordination of positions on the markets as a result of this work, as well as the creation of joint enterprise on production of this consortium on the territory of Russia and on international projects”, – said the head of Rosneft President.

Dividend policy

Approved by the government dividend policy of Rosneft for the payment in the amount of 35% of the profit will contribute to the growth of capitalization of the company, I’m sure Sechin.

“I am confident that the high quality attracted investors as well as the transition of “Rosneft” for a new standard of payment of dividends, which was approved by the government in 35% (net profit), will lead to an increase in capitalization of the company, including the remaining state-owned” – he said.

“According to our calculations, despite the sale, the cost of the package, which belongs to the state, will grow to about 80 billion rubles,” – said Sechin.

By the end of 2015, “Rosneft” has paid to shareholders 35% of profit under IFRS, or 11.75 per share, while the government ordered state-owned companies to pay 50% of the profits for greater profits – IFRS or RAS. However, for a number of companies have made an exception.

According to the draft budget for 2017, the Ministry plans that “Rosneft” will pay 50% of profits, calculated under IFRS, the results of the work in 2016, and in 2017 and 2018. The net profit of Rosneft under IFRS in 2016 is projected to be $ 373,8 billion rubles, in 2017 – 392,34 billion rubles, in 2018 – 432,3 billion. In 2015, the profit of Rosneft under IFRS amounted to 355 billion.

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