Rosneftegaz reduces its stake in Rosneft by 9.6 pp to 40.4%

TASS Russian News Agency | May 23, 2020 at 2:25 AM

MOSCOW, May 23. /TASS/. Rosneftegaz, a state-run company owned by Federal Property Agency, reduced its stake in state-run oil company Rosneft from 50% and 1 share to 40.4%, Rosneft said in a statement on Friday.

On May 15, Rosneft announced that it had completely discontinued its operations in Venezuela and withdrawn from all projects in the country, including exploration and production entities, as well as oilfield services companies. A company owned by the Russian Federation will be the owner of Rosneft's assets in Venezuela, a source in the government told TASS earlier.

As a result of the transaction, Rosneft received 9.6% of its own shares on the balance sheet of one of its subsidiaries.

According to the statement, RN-NeftKapitalInvest (100% subsidiary of Rosneft) became the owner of a 9.6% stake in Rosneft. Moreover, Rosneft withdrew from the capital of enterprises associated with activities in Venezuela.

Currently, the largest shareholders of Rosneft are the state-owned Rosneftegaz (40.4%), the British BP with a share of 19.75%, the Qatari company QH Oil Investments (18.93%), and RN-NeftKapitalInvest (9.6 %).

Rosneft spokesman Mikhail Leontyev told TASS that the company had decided to sell its assets in Venezuela taking into account the interests of its shareholders. According to him, the oil producer expects that US sanctions against Rosneft subsidiaries will be lifted.

On February 18, the US administration announced that it imposed sanctions on Rosneft Trading S. A. and its President Didier Kasimiro in connection with the sale of oil from Venezuela. On March 12, the United States announced that it was imposing sanctions against its subsidiary Rosneft TNK Trading International SA.

In early April, at a telephone briefing for journalists, US Special Representative for Venezuela Elliott Abrams announced that the United States authorities will lift sanctions imposed on Rosneft subsidiaries after the sale of the company's assets in Venezuela, if it turns out that they really no longer work in the country.