Italy gives final OK to Russian oil deal financing

|By:, SA News Editor

Italy's government gives its final approval to a €5.2B loan made in January by the Intesa SanPaolo bank to finance the privatization of a 19.5% stake in Rosneft, after checking to ensure the deal did not breach western sanctions on Russia.

The stake was bought by a consortium made up of Qatar's sovereign wealth fund and oil trading company Glencore (OTCPK:GLCNF, OTCPK:GLNCY), which together provided €2.8B and borrowed funds from Intesa to make up most of the rest of the purchase price.

Separately, the government says it has no plans to sell a stake in Eni (E -0.5%), denying a report from Il Messaggero that said it was considering selling its 4.3% direct holding in the energy company.