Qatar, Glencore buy $11.3 billion share in Russia's Rosneft

Russian President Vladimir Putin announced the deal personally on state television Wednesday, saying it was the “largest acquisition in the oil and gas sector in the world in 2016.”

The sale is part of the Russian government's efforts to privatise some state assets to help balance the budget amid a two-year recession.

Through the deal, Qatar makes a rare venture into Russia, the world’s second-largest oil producer.

"The transaction was made on an upward trend in oil prices and reflects on the value of the company," Putin said in a meeting with Rosneft CEO Igor Sechin broadcast on state television. "In that sense this is a good time."

Putin stressed that the controlling stake in the company would remain in the hands of the Russian government, which controls over 50 per cent of shares.

He called on Rosneft, the Finance Ministry and the Central Bank to ensure that the deal will not destabilise the country's financial market.

Sechin told Putin that Rosneft had taken part in talks with "more than 30 companies, funds, professional investors, sovereign funds, financial institutions from countries in Europe, the Americas, the Middle East and the Asia-Pacific region" ahead of the deal.

Moscow - which is not a member of OPEC - has said it is ready to reduce crude output by 300,000 barrels a day in the first half of next year.

OPEC and non-OPEC members are set to meet in Vienna on Saturday to discuss the implementation of the deal to slash output.

Experts predict that if oil prices remain higher than expected, the Russian government will use the opportunity to increase spending ahead of the 2018 elections instead of reducing its deficit.