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Deadline for Russian Bashneft’s privatization extended — official

It was earlier reported the Russian government intended to sell 50.08% of Bashneft shares before the end of 2016

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MOSCOW, August 16. /TASS/. Russian Prime Minister Dmitry Medvedev postponed privatization of oil producer Bashneft, Press Secretary of the Prime Minister Natalia Timakova told TASS on Tuesday, confirming information reported earlier by RBC.

"Yes, indeed, the Prime Minister made the decision to extend the deadline for privatization of Bashneft and the President approved it," Timakova said.

According to RBC, the letter sent by the Governor of Bashkiria Rustem Khamitov, who suggested postponement of privatization or contraction of the privatized government stake to 25% so that the company continued meeting social commitments to the region, served in particular as the cause for privatization deadline extension.

Economic Development Minister Alexei Ulyukayev said earlier that the Russian government intended to sell 50.08% of Bashneft shares before the end of 2016. Different options of the deal are being considered, in particular the sale of company’s shares on the exchange or their divestment to a strategic investor.

Bashneft oil company operates in more than 20 regions of Russia and abroad. The Federal Property Management Agency owns 50 plus 1 share in the company’s share capital; the republic of Bashkortostan holds 25% plus one share. Bashneft’s shares are traded on the Moscow Exchange.

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