Qatar steps in to buy US$9 billion Rosneft stake left by fallen Chinese oligarch Ye Jianming

Qatar emerged as a major shareholder in Rosneft on Friday after a US$9 billion deal to sell a stake in Russia’s state-run oil producer to China’s troubled CEFC Energy collapsed.

Qatar Investment Authority stepped in after the sellers - a consortium of QIA itself and mining giant Glencore - told CEFC it wouldn’t proceed with the original deal announced in October. A statement issued by Glencore didn’t explain why they were cancelling the sale, but CEFC has been struggling with debt.

The sudden change cements Doha’s links with Moscow at a time when Qatar is facing isolation from Saudi Arabia and other Gulf countries. The Kremlin loses the prospect of China becoming a major shareholder in the country’s largest oil producer, however.

After the new deal, Qatar Investment Authority (QIA) will own 18.93 per cent of Rosneft, making it the third-largest shareholder after the Russian state, which holds 50 per cent, and UK oil major BP with 19.75 per cent.

CEFC, a sprawling conglomerate with big interests in oil and gas, has come under increasing government scrutiny in Beijing amid concern rapid international expansion had stretched the group financially. Chinese media has reported that Ye Jianming, the founder and chairman of the rapidly expanding Chinese company, has been investigated by government authorities.