How Russia sold its oil jewel Rosneft without saying whether Glencore bought it (Australian Financial Review/Reuters – January 26, 2017)

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More than a month after Russia announced one of its biggest privatisations since the 1990s, selling a 19.5 per cent stake in its giant oil company Rosneft, it still isn’t possible to determine from public records the full identities of those who bought it.

The stake was sold for €10.2 billion to a Singapore investment vehicle that Rosneft said was a 50/50 joint venture between Qatar and the Swiss oil trading firm Glencore.

Unveiling the deal at a televised meeting with Rosneft’s boss Igor Sechin on December 7, President Vladimir Putin called it a sign of international faith in Russia, despite US and EU financial sanctions on Russian firms including Rosneft.

“It is the largest privatisation deal, the largest sale and acquisition in the global oil and gas sector in 2016,” Putin said. It was also one of the biggest transfers of state property into private hands since the early post-Soviet years, when allies of President Boris Yeltsin took control of state firms and became billionaires overnight.

But important facts about the deal either have not been disclosed, cannot be determined solely from public records, or appear to contradict the straightforward official account of the stake being split 50/50 by Glencore and the Qataris.

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