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Image courtesy of Rosneft.

Glencore, along with the Qatar Investment Authority (QIA), said Wednesday that it will acquire a minority stake in Russia’s Rosneft.

Switzerland-based Glencore confirmed that it’s in the final-stage of negotiations to purchase a 19.5 percent interest in the issued share capital of Rosneft.

The stake will be purchased for $10.85 billion.

Rosneft reportedly held talks with more than 30 potential buyers before announcing the consortium’s purchase, Bloomberg said.

Under the proposed arrangement, Glencore would commit $319.11 million in equity with the balance of the consideration being provided by QIA and by non-recourse bank financing.

As part of the deal, Glencore said it will sign a new five year offtake agreement with Rosneft for an additional 220,000 barrels per day for the Glencore Marketing business.

Glencore added that, other than the economic exposure represented by its equity, it will “not have any economic exposure to its interests in the shares.”

Once the transaction is entered into, it will be conditional on the subsequent finalization of all relevant financing, guarantee and other agreements, Glencore said.

The transaction is currently expected to close in mid-December.

Glencore added that further announcements about the deal will be made “in due course.”

After the deal is complete, the Russian government will retain a controlling stake in Rosneft.

The deal is designed to raise funds for the Russian government after two years of low oil prices squeezed the country’s coffers.

Russia is expected to attend a meeting with OPEC and over a dozen non-OPEC producers this week to discuss potential production cuts.

OPEC Secretary General Mohammed Barkindo told S&P Global Platts last week that he is “very confident” that non-OPEC producers will agree to cut production by 600,000 bpd.

Nigerian Oil Minister Emmanuel Ibe Kachikwu told Reuters on Wednesday that OPEC’s production deal will move ahead even if Russia is the only non-OPEC producer willing to trim production.

Earlier this month, OPEC producers agreed to cut production by about 1.2 million bpd starting on January 1.