Natural Resources Newsletter - 11 March 2014

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Glencore in Talks on Russneft Debt-for-Equity Deal

Glencore Xstrata PLC (Glencore) is in talks to convert US$900m of debt in Russian oil producer RussNeft OAO NK (RussNeft) into an equity stake of approximately 20%. If the proposed conversion proceeds it will make Glencore one of the largest foreign shareholders in the Russian oil industry. The deal which is subject to the finalisation of due diligence and valuation could complete by the end of 2014. RussNeft, which is owned by Mikhail Gutseriyev, is one of Russia's largest oil producers. Glencore is RussNeft's largest customer purchasing oil under a 20-year off-take agreement. (Source: www.ft.com4 March 2014)

Read more: Natural Resources Newsletter - 11 March 2014