Qatar rescues Russian oil giant after China deal breaks down

Qatar will purchase a nearly 19 percent stake of Russian energy giant Rosneft, after a deal with a Chinese company fell through, Reuters reported.

Doha's sovereign wealth fund QIA will purchase 18.93 percent of Rosneft after CEFC China Energy's planned deal collapsed when the chairman of the Chinese company was investigated for economic crimes by Beijing.

The deal will also cement the relationship between Russia and Qatar, which has been subject to a blockade from its neighbours.

Doha will likely benefit from the backing of the energy rich country, which has become a major player in the region and works closely with Qatar's arch-rival Saudi Arabia.

Sources also told Reuters that Qatar has made a smart move in the investment with Rosneft a major energy provider but still cheaper than its US rivals.

Qatar purchased 19.5 percent of Rosneft with Swiss energy giant Glencore, during the partial privatisation of the Russian firm in 2016.

CEFC China Energy was meant to purchase a 14.1 percent stake but that fell through on Friday.