Qatari stake in Rosneft paves way for global energy deals: Doha envoy

Qatari stake in Rosneft paves way for global energy deals: Doha envoy

Reuters  | Feb 12, 2019 06:15AM ET

Qatari stake in Rosneft paves way for global energy deals: Doha envoy

By Polina Ivanova and Katya Golubkova

MOSCOW (Reuters) - The Qatari sovereign wealth fund's acquisition of a stake in Russia's Rosneft sets the stage for collaboration between the Russian oil major and Qatar Petroleum, Doha's ambassador to Moscow said in an interview with Reuters.

The Qatar Investment Authority (QIA) became a shareholder in Rosneft following the Russian state-controlled oil giant's privatization in late 2016, and now holds a 19 percent stake.

Though Qatar is a small oil producer compared to its massive gas production, state oil firm Qatar Petroleum is on a drive to expand operations globally.

Qatar's ambassador to Russia, Fahad bin Mohamed Al-Attiyah, said QIA's stake opened the door to cooperation between Rosneft and Qatar Petroleum in projects around the world.

"There is no 'malicious agenda'," Al-Attiyah said. "Just pure economic reasons."

Qatar is seeking international partnerships amid a boycott imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, which severed diplomatic and transport ties with the country in 2017, accusing it of supporting terrorism. Doha denies the charge.

Qatar's joint projects with other energy firms do not raise eyebrows, he said. "So then why is there a question mark when we have a collaboration with Rosneft?"

Reuters reported last year that Russian state bank VTB secretly loaned around $6 billion to QIA to help finance its acquisition of the Rosneft stake, undermining the deal's stated aim of bringing foreign money into Russia.

Rosneft denied the report.

Al-Attiyah said he did not know whether Russian funds were used to finance the deal. Qatar could sell the stake but was unlikely to do so soon, he said.

"We did not invest that much of a stake into this company to flip just like this, very quickly," Al-Attiyah said.


The United States has called on Qatar, one of the world's top suppliers of liquefied natural gas (LNG), to challenge Russian gas dominance in Europe.

But the tiny Gulf nation will not be at loggerheads with Russia over the European market on political grounds, Al-Attiyah said.

"We are ... in the space of the same commodity and we do want to expand our markets," he said. "If that expansion comes within the natural course of economic partnership, then absolutely fine."

"But if it comes within the context of any political rivalry, then absolutely we will say no to that ... Why try to push somebody out?"

Qatar could also partner in Russian LNG projects, though participation in Novatek's Arctic LNG 2 has not come up in discussions, he said.

Al-Attiyah confirmed that Qatar was in talks about buying Russian air defense systems, but said no contracts had been signed due to sanctions on Russian military exports.

The sanctions "created considerable concern", Al-Attiyah said.

Saudi Arabia previously threatened to take military action if Qatar installed the Russian S-400 air defense system.

© Reuters. FILE PHOTO: The company logo of Rosneft is seen outside a service station in Moscow

"We don't tell the Saudis what they should buy," Al-Attiyah said. "And we won't let them interfere in our relationships with Russia."

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes