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Russian government cannot sell stake in Rosneft on public market — Kremlin

May 26, 2016, 16:22 UTC+3 MOSCOW

According to presidential aide Andrey Belousov, selling the stake to two strategic investors would be the best option of the oil company’s privatization

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© AP Photo/Mikhail Metzel

MOSCOW, May 26. /TASS/. It is impossible for the Russian government cannot sell the stake of the state-owned oil company Rosneft on public market, presidential aide Andrey Belousov said in an interview with TASS.

He is also chairman of the company’s board of directors

According to him, selling the stake to two strategic investors would be the best option of the company’s privatization.

"Considering that it is planned to sell 19.5%, I think it would be appropriate if there are two investors, not only one investor, because it is quite a big package and these should be strategic investors," he said.

Belousov added that the purchase of the privatized stake in Rosneft by one strategic investor is possible but it implies paying a fair market price plus premium.

"If it is one investor than a premium would be appropriate," he said adding that the government is now searching for a strategic investor.

At the end of November 2014, the Russian government agreed to carving out of 19.5% of Rosneft shares from Rosneftegaz for further privatization for the price not lower than last year’s IPO ($8.12 per share), and the Russian Prime Minister Dmitry Medvedev signed a formal order.

Earlier this month, Economic Development Minister Alexey Ulyukayev said that privatization of 19.5% stake of Rosneft may provide the budget with 700 bln rubles ($10.5 bln).

Rosneftegaz owns more than 69.5% of Rosneft’s shares, BP holds 19.75%.

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