The price of a Big Mac Combo Meal in Paris: €8.
Current conversion: $1 = €0.93.
About 1:1.
Data points, Russia-Rosneft-Italy-Qatar-Swiss Glencore mega-deal:
- mega-oil deal: late, 2016, Russia sold almost 20% of its stake in its giant oil company -- Rosneft
- stake sold for slightly more than €10 billion; valuing Russia's stake in the company (before the sale) at €52 billion
- Putin: called it the largest sale and acquisition in the global oil and gas sector
- also one of the biggest transfers of state property into private hands since the early post-Soviet years
- buyer: Qatar and Glencore
- Glencore: Swiss oil trading firm
- Glencore: only €300 million, less than 3% of the purchase price; Glencore said it limited its interest to just half-a-percent of Rosneft; likely to be a Cayman Islands company whose owners cannot be traced
- public data and "inference" suggests:
- Qatar: €2.5 billion
- Glencare: €0.3 billion
- Intesa (Italian bank) loan: €5.2 billion
- shortfall: €2.2 billion
- the full €10.2 billion traces back to Russia's second-largest bank, state-controlled VTB
Why is this important?
- Rosneft: world's largest listed oil company by output; one of two crown jewels of the Russian state;
- Gazprom: Russia's other crown jewel
- Qatar (from the article):
- they like investing in energy
- they saw the upside in Rosneft
- they saw the upside in building relations with Russia
- Russia's role in Middle East politics is only set to rise
- Qatar is having its own financial challenges; will run a $13 billion deficit this year;
- due the vacuum created in the Mideast by the Obama administration, Russia has moved into fill it
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