21.10.2020

Sechin denied the participation of VTB in the secret financing of the transaction “Rosneft”

Prior to this 50% plus 1 share of “Rosneft” belonged to the state “Rosneftegaz”, 19.75% – the British BP and 19.5% of Singapore QHG Oil Ventures. In September 2017 it became known that the package 14.16%, “Rosneft” plans to redeem at QHG Oil Ventures private Chinese company CEFС. The amount of the transaction was estimated at $9.1 billion. 

November 9, the Agency Reuters reported , citing informed sources, the sale of 14.2%, “Rosneft” Qatar Fund QIA was not conducted on means of foreign investors, and a loan of $6 billion provided by VTB. The Agency also cited data from the financial statements of VTB in September, according to which the Bank loaned an unnamed foreign borrowers 434 billion ($6.7 billion) for up to three years, taking before that, the Central Bank of 350 billion rubles. Financial results of VTB, published November 8, it follows that in the third quarter of 2018 the amount of loans issued to 10 largest borrowers increased by 403 billion rubles (about $6 billion).

But after the Chairman of the Board of Directors CEFС E Jianming was suspected of committing economic crimes, the company was in serious financial trouble and the deal fell through. After that, Glencore and QIA announced its decision to withdraw from QHG Oil Ventures and to divide the shares in “Rosneft” in accordance with the original investment. In August 2018 QHG Oil Ventures has estimated the package 14.16% of Rosneft’s $8.4 billion

Following the deal, the Qatari Fund was added to 4.77% of shares of “Rosneft” a package of 14.16% and now directly owns was 18.93% stake in the Russian company. Glencore’s share of Rosneft decreased to 0.57%. Shares of other shareholders remained unchanged.

The privatization of 19.5% of “Rosneft” took place in December 2016 – January 2017. The deal to sell stake to a consortium consisting of Glencore and QIA was closed on 3 January 2017. As a result of privatization package of Rosneft, the Russian budget got 710,8 billion ($11.1 billion or €10.5 billion). The main creditor of the consortium was made by the Italian Bank Intesa Sanpaolo is €5.2 billion €2.2 billion has provided a pool of European lenders. Own investments amounted to €2.8 billion, while Glencore has paid from its own funds of €300 million, and QIA – €2.5 billion.

In December 2016 VTB has provided interim financing for the transaction by issuing a bridge loan for €10.2 billion Singapore QHG Shares for one week. VTB participated and failed in the end, the deal between the CEFC and QHG Oil Ventures: in January 2018, the state Bank has signed with the CEFC an agreement to provide €5 billion secured by the purchased shares of “Rosneft”. After CEFC are unable to refinance in the state banks of China, in early may, 2018 line of credit for the company was closed.

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