China’s CEFC wins preliminary government approval for Rosneft deal: sources

28 Sep 2017   China

Privately-run conglomerate CEFC China Energy has obtained preliminary state approval for its proposed $9.1 billion investment in Russian oil major Rosneft ( ROSN.MM ), three sources with knowledge of the matter told Reuters. CEFC said earlier this month it will buy a 14.16 percent stake in Rosneft from a consortium of Glencore ( GLEN.L ) and the Qatar Investment Authority, strengthening energy ties between Moscow and Beijing. The approval was received just about a week after the deal was announced, the sources said. “It’s a preliminary approval from the NDRC which means the government gave the in-principle go-ahead for the deal,” said an industry executive with direct knowledge of the government decision. NDRC, or the National Development and Reform Commission, is China’s top economic planner. “The preliminary approval means the government sees the strategic significance of this deal and shall lend its backing in financing.” […]

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