Switzerland-based mining and commodities trading giant Glencore has said it recently sold its stake in a Russian oil company after its founder was placed under sanctions by the European Union.
Glencore, a publicly traded company, announced on February 15 that it agreed at the end of 2021 to exit its minority stake in Russneft, a small Russian oil producer founded by Mikhail Gutseriyev.
The 63-year-old Gutseriyev, who is from Ingushetia in Russia's North Caucusus, was hit by sanctions in June by the European Union for his close ties to Alyaksandr Lukashenka, the authoritarian leader of Belarus.
The billionaire was one of several tycoons included in EU sanctions to punish Lukashenka for human rights abuses against the peaceful Belarusian opposition.
Russneft supplies Belarus with crude oil, while Gutseriyev has been supporting the development of a digital economy in the country. He has also been investing billions of dollars in a potash complex since Lukashenka awarded him a license to it.
SEE ALSO: Targeted: The Lukashenka Allies And Kin Hit With Western SanctionsCEO Gary Nagle said Glencore sold the Russneft stake because it was no longer a material asset for the company. The Swiss company had reportedly been discussing selling the stake for a few years.
Nagle declined to disclose the sales price or the buyer.
Glencore, which trades on the London Stock Exchange, is valued at $75 billion.
Analysts say the timing of the sale may be tied to the European sanctions, which made it difficult for Glencore to sell Russneft's oil.
The sale also comes amid deeply strained relations between the West and Russia over the Kremlin's aggressive actions toward Ukraine.
The United States has said Russia's massive troop buildup near Ukraine appears to be a prelude to an invasion. Russia denies having such plans.
The United States and the EU have threatened to slap severe sanctions on Russia should it attack Ukraine, raising the risks for Western companies operating in the country.