China deepens oil ties with Russia with deal for share of Rosneft

Moscow

A CLOSELY held Chinese oil company agreed to buy a minority stake in Rosneft PJSC for about US$9 billion, deepening energy and political ties with Russia amid increasing tensions with the US.

The deal sees Glencore plc and Qatar's sovereign wealth fund selling most of their holding in Russia's biggest crude producer, which they acquired to much fanfare last December. The commodities giant run by Ivan Glasenberg is making way for CEFC China Energy Co - little known even within the energy industry - while retaining its prized access to millions of barrels of Russian oil exports.