Russia may sell 19.5% in Rosneft in 2014 – minister

May 19, 2014

The Russian government may privatize a 19.5% stake in oil giant Rosneft in 2014, Economic Development Minister Alexei Ulyukayev said on May 17 at an Asia-Pacific Economic Cooperation meeting, Prime reported on May 17.

“I think that we can close the deal this year. Our privatization plan stipulates that we must do this in 2016 but it would do no harm if we did that earlier. The market situation is quite good now. We are fully ready to make Rosneft a public company. Both Russian and foreign investors are interested in this,” he said.

The privatization will be conducted either by selling the entire stake to a sole investor or by splitting it in parts, he said. “This is a question we will consult on with an investment consultant. Because it might have sense both to sell a 19.5% stake entirely and to sell it by parts. The position of the investment consultant is important here,” he said.

The government holds a 69.5% stake in Rosneft, and after the privatization it will retain the control stake. The estimate of revenue out of privatization currently stands at 423.5 billion rubles.

Copyright: Prime, 2014