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Russian government analysing market for Rosneft state stake privatisation - Medvedev

The Russian government head did not rule out the possible sale of part of the Rosneft stake to Chinese partners

MOSCOW, May 20 /ITAR-TASS/. Russian Prime Minister Dmitry Medvedev does not rule out the possible sale of part of the state package of shares of the Rosneft oil company in 2014. He made this statement in an interview to Bloomberg TV.

“So far we have talked about next year and even 2016, but we don’t exclude that we may return to this problem in the current year,” he said. The prime minister also said that before taking the decision on privatisation the government would analyse the market situation.

“We should consider all the factors, first of all the price of shares, that is, the privatisation price. Our task is to get the maximum profit, but at the same time we cannot delay privatisation endlessly, reasoning that in 2015 the price will be better than in 2014, and in 2016 - better that in 2015,” Medvedev noted. It is necessary to conduct research. Such kind of analyses and research are underway.”

The RF government head also did not rule out the possible sale of part of the Rosneft stake to Chinese partners, “if they make an advantageous offer.” “Each deal should be advantageous, first of all to the company itself. We are trying to create a stable structure of our energy market. Finally, Rosneft should itself decide where it should get development sources. If the Chinese investors make an advantageous offer, we cannot rule out anything. In any case, the government has plans of privatisation of a considerable package of Rosneft,” Medvedev said.

Itar-Tass previously reported with reference to RF Economic Development Minister Aleksei Ulyukayev that the state package of Rosneft could be sold both fully and in parts. “This is the issue on which we will consult an investment adviser. Because there is also logic in selling 19.5% fully and in selling the state package in parts. The investment adviser position is important here,” the minister said.

It is planned to privatise 19.5% minus one share of the OJSC Rosneft. At present, the state-run Rosneftegaz owns 69.5% in the company. Additional revenues of the federal budget in the form of dividends from OJSC Rosneftegaz in the event of sale may reach 423.5 billion roubles. On the privatisation results, the state will keep the controlling stake in this world’s largest oil company.