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Decision on Russia's Rosneft privatization taken — minister

February 20, 2016, 9:51 UTC+3 BERLIN

All the revenues from privatization will be transferred to Russia’s federal budget

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BERLIN, February 20. /TASS/. The decision on the privatization of shares of Rosneft oil company has been taken, all the revenues from privatization will be transferred to Russia’s federal budget, Economic Development Minister Alexey Ulyukayev said on Friday.

"Formally, the sale of Rosneft will be done by Rosneftegaz so these revenues will be raised to the budget as dividends of Rosneftegaz, which means that these are direct budget revenues. It is just a formal procedure. I think the relevant decision is there," he said.

Earlier, Ulyukayev said that diamond mining company Alrosa, oil companies Bashneft and Rosneft might be privatized in the first place.

Rosneft CEO Igor Sechin said that it was necessary to wait until the price of oil at $100/barrel for the effective privatization of Rosneft. He also said that it is necessary to take into account other circumstances, such as the need to form additional revenues for the budget. Sechin estimated the fundamental value of the company at $100-130 billion.

In 2015, Russian Finance Minister Anton Siluanov reported that Russia could raise up to 550 billion rubles ($760 mln) from the privatization of 19.5% stake of Rosneft. He said that foreign companies, in particular Chinese companies, may take part in privatization.

Rosneftegas, which manages the assets of the Russian government in oil and gas industry, owns more than 69.5% of shares of Rosneft. British BP owns 19.75% of shares of Rosneft.

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