Support The Moscow Times!

Ulyukayev Arrest Scuppered Japanese Bid for Shares in Russia’s Rosneft

Maxim Stulov / Vedomosti

The arrest of Russian Economy Minister Alexei Ulyukayev may have killed off a privatization deal being brokered between Japanese investors and Russian oil giant Rosneft, the Dozhd television network reported Thursday.

Japan's state-owned Oil, Gas and Metals National Corporation (JOGMEC) had earlier expressed interest in buying the Kremlin's 19.5 percent share in Rosneft, an unnamed source told the outlet.

Japanese negotiators were reportedly reassured that Ulyukayev was “absolutely trustworthy” prior to his Nov. 14 arrest on charges of corruption.

The arrest reportedly shook Japanese officials, who Dozhd's source described as having been “extremely cautious.”

The loyalty of fear: Read more on Putin's message to the Russian elite with the arrest of Economic Minister Ulyukayev.

The Russian side also had doubts about the Japanese deal, Dozhd reported. Rosneft feared the deal would not be settled before the Kremlin's Dec. 5 deadline.

Rosneft had reportedly faced considerable state pressure to sell the shares before the end of the year and provide a much-needed boost to Russian state coffers.

The Kremlin's 19.5 percent stake in Rosneft was bought by British-Swiss commodities trading firm Glencore and the Qatari Sovereign Wealth Fund for 10.2 billion euros ($11.3 billion).

Rosneft's shares skyrocketed by 5.1 percent to reach 364.5 rubles ($5.75) per share when news of the deal broke on Dec. 8.

Neither JOGMEC's Moscow office’s nor the Japanese Ministry of Economy, Trade and Industry responded to requests for comment.

Rosneft press secretary Mikhail Leontiev told Dozhd that negotiations had been carried out between several companies, but did not comment on a potential deal with JOGMEC.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more