The billionaire Russian businessman behind private energy company Areti Energy SPV has disclosed it’s cutting its stake in Calgary-based oil and gas producer Spartan Delta Corp.

Areti Energy, which was created by Igor Makarov, revealed on Monday it is in the process of selling 15 million shares of Spartan to third party buyers. Makarov, who appeared on a list of Russian oligarchs by the U.S. Treasury in 2018, does not currently face any sanctions in Canada following Russia’s invasion of Ukraine last month.

According to the release, Areti sold five million shares of the company on Friday, and intends to sell an additional 10 million shares by the end of the week, for total proceeds of $121.5 million.

The shares being sold represent roughly 9.8 per cent of Spartan’s outstanding float. Areti will be left with an 8.4 per cent ownership stake in the company after the divestment.

“The purpose of the share sale is to generate immediate liquidity and reduce Areti's overall economic exposure to Spartan,” the company said in a release.

Scotia Capital Analyst Cameron Bean said the move was a positive for Spartan for two reasons.

“The sale will reduce Areti’s ownership below 10 per cent and should help ease some of the controversy surrounding [Spartan’s] stock due to ARETI’s Russian ties,” Bean wrote in a note to clients on Monday, adding the sale will also help increase liquidity in the energy producer’s shares.

He said he expects Spartan to continue to pay down its debt and that the company could announce a share buyback program in the near future. Spartan is one of Bean’s top oil stock picks with an outperform recommendation (the equivalent of a buy) and a $17 per share price target.