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Share Price: 472.80
Bid: 473.35
Ask: 473.50
Change: 2.25 (0.48%)
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Open: 472.00
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UPDATE 1-Putin sees success for Glencore, Qatar, Intesa in Russia post-Rosneft deal

Wed, 25th Jan 2017 15:07

(Adds details, quotes, background)

By Olesya Astakhova

MOSCOW, Jan 25 (Reuters) - President Vladimir Putin toldtrading giant Glencore, Qatar's sovereign wealth fund,and Italian bank Intesa their businesses in Russiawould be successful after they took part in the privatisation ofa stake in Rosneft.

"I want to thank you for your trust, for your decision, wantto express confidence that your business in Russia will bedeveloping and developing successfully," Putin told a meetingwith the heads of the companies.

The meeting was also attended by Igor Sechin, chiefexecutive of Rosneft, in which the state sold a 19.5 percentstake last month to the consortium of Glencore and the QatarInvestment Authority.

Intesa advised on the deal and provided 5.2 billion euros($5.58 billion) in financing.

Putin said he hoped Intesa would expand its presence inRussia.

Russia sold the Rosneft stake for 10.2 billion euros ($10.94billion), earning revenues for the state budget hit by low oilprices and Western sanctions.

Putin said since the deal was announced on Dec. 7, Rosneft'smarket value had risen 18 percent.

"So you have already earned," he said.

Ivan Glasenberg, Glencore chief executive, told the meetingthe deal was very important for the global commodities trader,which is studying the option of swap deals with Rosneft and oilsupplies to India and other Asian markets, including China.

Earlier in January, Rosneft signed a deal with a companylinked to Qatar and Glencore to supply up to 55 million tonnesof crude oil in total over a five-year period.

Currently, Rosneft's largest buyer of oil is Swisscommodities trader Trafigura with estimated annual purchasingvolumes of around 20 million tonnes, equal to the entire annualoutput of two large refineries.

($1 = 0.9322 euros) (Reporting by Olesya Astakhova; Writing by Denis Pinchuk andKatya Golubkova; Editing by David Evans)

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