The $9.1 billion purchase by Chinese energy conglomerate CEFC of a stake in Russian oil company Rosneft has come to a standstill, sources told Reuters, following CEFC chairman Ye Jianming’s resignation earlier in the week.
The Chinese company had already began making payments for the deal when communications between the two parties abruptly stopped. CEFC had planned to buy a 14.16% stake from a consortium including metals trader Glencore.
According to the sources, Rosneft representatives have travelled to China in search of further correspondence but have yet to receive an update on the situation from CEFC. “The other party (CEFC) has just vanished” one source said.
China and Russia are continuing to strength economic ties via the energy sector, with the construction of a second major oil pipeline from Siberia into Northern China well under way. The Rosneft deal, if completed, will be one of the largest Chinese investments into Russia to date.