Europe

Glencore, Qatari fund finalize deal to acquire Rosneft stake

Russia's Rosneft oil giant says commodities company Glencore and Qatar's sovereign wealth fund are investing $3 billion of their own funds to acquire a 19.5 percent stake in Rosneft.

Rosneft also said the 10.5-billion euro ($11.1-billion) deal signed Saturday also envisages that Italy's Intesa Sanpaolo bank will provide loans to finance the acquisition.

Russian President Vladimir Putin personally broke news on the deal Wednesday. It's the largest acquisition in the global energy market this year.

The Kremlin described the deal as part of efforts to unload some state assets to help balance its budget amid a two-year recession caused by a drop in global oil prices and by Western sanctions against Russia. Glencore's involvement has raised eyebrows since Russia's oil industry is targeted by the U.S. and EU sanctions.