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Russia to sell 19 percent stake in Rosneft

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Staff writer ▼ | April 12, 2013
Russia's government is considering selling a 19 percent stake in Rosneft this year. The government wants to speed up privatization that has slipped behind schedule.
Rosneft
RosneftRussia's government is considering selling a 19 percent stake in Rosneft this year. The government wants to speed up privatization that has slipped behind schedule.


The selling of Rosneft was announced by economy minister Andrei Belousov as officials are showing urgency to complete asset sales because a slowing economy dents tax revenues.

"I raised the issue during the government meeting that we need to speed up the process of large-scale privatization," Mr. Belousov said after a cabinet meeting.

Russia's government has long been studying the possibility of selling a stake in Rosneft. The company's market value is $77.5 billion and the 19 percent it wants to sell comes on top of the stake already acquired by British oil major BP. British company now has 19.75 percent of Rosneft after Rosneft's $55 billion acquisition of TNK-BP. BP received $17 billion cash and a 12.84 percent stake in Rosneft and then bought 5.66 percent of Rosneft from state company Rosneftegaz.

"It's a strategic decision, on Rosneft. There is already 5.66 percent sold, we are talking about an additional package," said Mr. Belousov.

According to the government's mid-term privatization strategy, the state energy holding company should start cutting its 69.5 percent stake in Rosneft this year, with a complete sale by 2016.

Rosneft's chief executive officer Igor Sechin is against the sale. Other privatizations planned this year are Aeroflot, Rostelecom, Sheremetyevo airport and United Grain Company.


 

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