Back to analytics

Why Glencore is selling its share in Russneft after 20 years of cooperation

Swiss commodity trader Glencore is selling its share in Mikhail Gutseriev’s Russneft Oil Company, as follows from Glencore report for 2021, published 15 February. «In December 2021, Glencore made an agreement to sell the share in Russneft Oil Company. Closing of the transaction depends on obtaining a number of regulatory approvals and is expected in the first six months of 2022», says the document. The buyer and the transaction amount are not disclosed. But it follows from the report that in 2021 Glencore reduced its investments in Russneft by 6 times as compared to the previous period – from $309 million to $50 million.

«Glencore, as any major commodity trader, strongly depends on obtaining bank financing. Foreign financial organisations in most cases as a matter of principle do not want to look into the details of sanction risks and bring forward very strict conditions for working with them, if they agree to cooperate at all», adds attorney of International Economic Compliance of ART DE LEX Marat Samarsky. 

Click here for more information: