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* Kremlin says deal is worth 10.5 bln euros
* It shows lure of Russian oil assets, despite sanctions
* Deal comes days after OPEC, Moscow agree on output cuts
* After Trump win, investors re-evaluating Russia risk (Edits throughout, adds context)
By Polina Devitt and Elena Fabrichnaya
MOSCOW, Dec 7 (Reuters) - Russia said on Wednesday it sold aminority stake in oil giant Rosneft for 10.5 billioneuros ($11.3 billion) to Qatar and commodities trader Glencore, confounding markets which believed the Kremlin'sstandoff with the West would scare off major investors.
The deal -- which has yet to be confirmed by Qatar orGlencore -- suggests the lure of taking a share in one of theworld's biggest oil companies outweighs the risks that come withWestern sanctions imposed on Russia over the conflict inUkraine.
It pointed to a possible reassessment by foreign investorsof the risks of dealing with Russia, at a time when the electionof Donald Trump as U.S. president has heightened expectations ofa thaw between Moscow and Washington.
The deal, for the sale of a 19.5 percent stake in Rosneft,was announced days after Russia and OPEC agreed to coordinatedoutput cuts to support oil prices, the first time they have cutin tandem in 15 years.
State-owned Rosneft had kept the deal a tightly-guardedsecret, with the first word emerging when Russian PresidentVladimir Putin met Rosneft Chief Executive Igor Sechin onWednesday evening in Moscow.
"It is the largest privatisation deal, the largest sale andacquisition in the global oil and gas sector in 2016," Putinsaid in televised remarks from the meeting.
Under the deal, according to Sechin, Glencore and Qatar'ssovereign fund will take equal shares of the 19.5 percent stakein Rosneft, which is being sold off by the government as part ofa privatisation drive to fill gaps in the state budget.
PUTIN'S CONTRIBUTION
Putin congratulated Sechin, one of his closest lieutenants,on the deal and said he hoped that the consortium of newinvestors would improve Rosneft's governance and transparencyand would raise its market value.
"Given the very difficult economic circumstances and theextremely tight deadlines for this kind of project, I can reportto you that we were able to land this deal thanks to yourpersonal contribution, your support," Sechin told Putin.
Just a few weeks ago, most industry watchers had written offthe chances of a foreign investor being found for Rosneft, andthe government signalled that the company would instead buy itsown shares.
But as the deadline for the sale passed, there was no wordfrom Rosneft, suggesting that Sechin and his aides were insteadtrying to hash out a last-minute deal to land a foreigninvestor.
It was not clear how the two buyers would finance thepurchase between them. Qatar's sovereign fund, the QatarInvestment Authority, is one of the biggest investors inGlencore.
The commodities trader stands to benefit by gaining accessto Rosneft's crude volumes, while Qatar will further establishitself as a major investor in some of the world's biggestbusinesses.
After the deal was announced, the Kremlin said steps wouldbe taken to ensure that the influx of a large volume of foreigncurrency from the deal would not cause volatility on the Russianforex market. ($1 = 0.9298 euros) (Additional reporting by Katya Golubkova and Dmitry Zhdannikov;Writing by Christian Lowe and Polina Devitt; Editing by AdrianCroft)
