Konstantin Simonov: Rosneft’s privatization by the foreign investor, which has taken place, is much more beneficial that the buy back
Moscow. Rosneft’s privatization has been completed. The consortium of Glencore oil trader and Qatar sovereign wealth fund acquired 19.5% of Rosnef’s shares for €10.5 billion. The deal was supposed to be closed by mid-December. It is reported that Glencore will pay for the stake at the Russian national company with €300 million’s worth of its own shares and the remaining amount will be paid by “Qatar sovereign wealth fund and bank financing without recourse”. Konstantin Simonov, the general director for the National Energy Security Fund commented on the largest Russian privatization deal this year to the Oil and Gas Information Agency:
- The decision on Rosneft’s privatization turned out to be unexpected and sensational. Nobody expected such a turn of events. In my opinion, this arrangement is much better in terms of taxation, than the pay back scenario, that is if Rosneft bought its shares from Rosneftegaz. Now there are two investors and Russian budget will really receive money from the outside. Glencore is collecting the money from European banks. It looks like the winner was uncertain till the last moment. Despite the fact that all ended well, there is still the question of why they didn’t hold an auction. They could have got a bigger sum of money…
For Rosneft this option with Glencore is good, because they won’t have to allocate money for the buy back, and will be able to use it for other purposes. Two more foreign investors have appeared, the shares have gone up. Note that Rosneft bought 600 billion’s worth of Ruble bonds. This means that they meant to do buy back till the end of last week, and even till the beginning of this week.
Now I wonder what the management under three large foreign investors will look like. Let us not forget that BP has a big stake.
It is not a secret that Rosneft used to work closely with Trafigura. While Glencore and Gunvor were carefully put out of the market, and suddenly there is such a tern…
The government might have managed to have their way about this issue. Then the situation becomes clearer. It means that there was a real competition for Rosneft’s shares”.