Total to buy Novatek stake for $4bn

Partners: Total chief executive Christophe de Margerie and Novatek chief executive Leonid Mikhelson

French oil giant Total became the third energy company to forge an alliance in Russia this year, agreeing to pay $4 billion for a stake in top gas independent Novatek and joining its Arctic gas project.

The foray by the French company follows strategic offshore exploration alliances struck in January by state-controlled oil major Rosneft with Britain's BP and US ExxonMobil.

The deals, all signed under the patronage of Prime Minister Vladimir Putin, represent a major shift in Russia's energy strategy away from the knockabout oligarchic capitalism of the 1990.

Now, companies either controlled by or allied with the Kremlin, are contributing reserves and keeping control, while foreign partners get minority stakes in return for contributing know-how and experience.

The latest deal, under discussion since the middle of last year,…

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