Streetwise Professor

May 17, 2018

Rosneft: The Farce Continues

Filed under: Commodities,Economics,Energy,Russia — The Professor @ 7:22 pm

Remember when the Russian government said it was going to privatize a piece of Rosneft? Hahahaha. That is so 2016–please try to keep up!  In its announcement of “Rosneft 2022” the company proposes to buy back about $2 billion in shares, which is just about 20 percent of the piece sold off in 2016–no, wait–2017–no, wait–2018.  Adding even more hilarity is that the buyback plan was apparently at the insistence of Qatar, the last buyer standing which agreed to buy most of the shares initially privatized, much to the relief of the banks (Intesa and unnamed Russian ones) who were wearing a big piece of the risk.

I’m guessing that this was one of the terms Qatar laid down to absorb the entire hand-me-down stake for the original 2016 price, even though in Euro terms Rosneft’s shares are substantially lower today (despite a rallying oil price!)

Quite the vote of confidence there, eh?  Well, not that that’s surprising.  The conspicuous failure of any Chinese buyer to step into the shoes of disgraced CEFC tells you just how much confidence Rosneft inspires these days.

I am hard pressed to recall such a farcical series of events involving a major company.  If this one of  Russia’s state champions, just think of the shape the palookas are in!

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2 Comments »

  1. Interesting
    http://www.scmp.com/news/china/diplomacy-defence/article/2146830/chinas-first-home-grown-aircraft-carrier-finishes

    So it looks like a CV, but then, as we have discussed before, so did this
    https://static1.squarespace.com/static/531fdb48e4b0e8fbe6259952/t/57f1178520099ef24d21aa22/1475419350362/?format=1000w

    Comment by Green as Grass — May 18, 2018 @ 9:33 am

  2. […] And: […]

    Pingback by Of Course A State Bank Financed The Rosneft Deal – No One Else Was That Stupid | The Continental Telegraph — November 9, 2018 @ 11:22 am

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