Glencore, Qatari fund buy 19.5 percent in Russia's Rosneft

MOSCOW (AP) — Commodities giant Glencore and Qatar's sovereign wealth fund have together acquired a 19.5 percent stake in Russia's top state-controlled oil company, Rosneft, in a deal worth 10.5 billion euros ($11.3 billion), officials said Wednesday.

The long-planned sale is part of the Russian government's efforts to sell some state assets to help balance the budget amid a two-year recession caused by a drop in global oil prices and Western sanctions.

Speaking at a televised meeting with Rosneft CEO Igor Sechin, Putin noted that the deal follows a rally in global oil prices following OPEC's decision to cut production.

Sechin reported to Putin that the "strategic" deal envisages the creation of a joint venture between Rosneft and the consortium comprised of Glencore and Qatar's fund, as well as a long-term contract with Glencore for future crude supplies.