Mubasher: China Energy Company Limited ‘CEFC’, which is an oil firm plans to purchase a 14.16% stake in the Russian oil company Rosneft at a value of $9.1 billion from a consortium of the Qatar Investment Authority (QIA), and Glencore.

“The deal comes as the US imposes new … economic sanctions on Russia, making it difficult for large Western firms such as Glencore to develop partnerships and increase ties with state-owned firms such as Rosneft, ” Reuters reported.

“Glencore and [the] QIA will retain stakes of 0.5%, and 4.7% percent in Rosneft, respectively,” the agency added.

Russia topped the crude suppliers to China as it competes with the Saudi Arabian Oil Co, known internationally as Saudi Aramco.

“QIA and Glencore cut the stakes partially because of a decline in the US dollar against the Euro, which made debt servicing more expensive,” Igor Sechin, the manager of Rosneft stated on Friday.

CEFC plans to invest in Rosneft’s oil fields in East Siberia, Sechin added.

“From Rosneft’s point of view, the arrival of such a partner is positive as it shows that the foreign investors still keep their interest to the Russian oil industry,” Reuters indicated, citing Alexander Kornilov from Aton brokerage as saying.

China-based CEFC noted that the transaction would give it equity oil output of 42 million tonnes (840,000 barrels per day) on a yearly basis, and access to oil and gas reserves of 2.67 billion tonnes (20 billion barrels).