Glencore's Bid to Retain Rosneft Stake Denied by Moscow Court

In a significant legal setback, commodities trader Glencore has lost its appeal in a Moscow court regarding the seizure of its stake in Rosneft, Russia's largest oil producer. The court upheld a previous ruling that allows Sberbank, Russia's largest bank, to confiscate Glencore's 0.57 percent stake as compensation for a debt amounting to €114.8 million. The dispute arose from an agreement involving oil supplies delivered to Sberbank's Swiss subsidiary, Sber Trading Swiss. Following the court's approval, Sberbank is now authorized to take control of Glencore's assets to settle the outstanding debt. Glencore's legal team argued that the Russian court lacked jurisdiction over the matter and sought to have the seizure order overturned. Despite these arguments, the court's decision reflects the challenges foreign companies face in navigating the Russian legal system, particularly in cases involving state-owned entities. Glencore's stake in Rosneft, a significant player in the global oil market, is now at risk as the company grapples with the implications of this ruling. This development underscores the ongoing complexities and risks associated with international investments in Russia, especially in the energy sector, where geopolitical tensions and financial disputes can lead to swift legal actions. Glencore's situation serves as a cautionary tale for other foreign investors operating in the region.