MOSCOW, November 7. /TASS/. Russia’s First Deputy Prime Minister Igor Shuvalov has approved the directive addressed to the government’s representatives in Rosneftegaz company on privatization of 19.5% in state owned oil company Rosneft.

The relevant document has been published on the government’s website.

Rosneftegaz manages Russian state owned oil and gas assets. It holds more than 69.5% in Rosneft. The Russian government wants to sell 19.5% of Rosneft shares before the end of 2016 to raise funds to cover the budget deficit.

The directive obliges the state representatives (members of Rosneftegaz Board of Directors) to hold the board’s meeting and to put Rosneftgeaz participation in Rosneft on the agenda of that meeting

Shuvalov said that earlier that the cabinet was preparing a relevant directive and plans to sell the stake to "real investors".

He said that the buyback of Rosneft shares is possible in case the government fails to receive all the funds from privatization of the company to the budget by the end of 2016. He added that the buyback is considered only as a temporary measure.

Economic Development Minister Alexei Ulyukayev said that the minimal price of 19.5% in Rosneft was be set on base of share listing as of October 11 - 748.29 bln rubles ($11.7 bln).

According to him, the deal should be closed before December 5 and the minimum price of Rosneft shares will be determined based on data from October 11, 2016, - 748.26 bln rubles ($11.72 bln) with a 0.95 multiplier.

"The Ministry of Economic Development submitted the decree, which was later approved by the Russian Government on November 3, which establishes approaches to determining the price of the privatization deal for a 19.5%-stake in Rosneft owned by Rosneftegaz. The minimum price is based on the price quotations of October 11, 2016, when after the announcement of Bashneft privatization Rosneft shares rose in price significantly. The figures are as follows: 748.26 bln rubles ($11.72 bln), multiplied by 0.95, which includes, in accordance with normal market practice, a minimum discount," the Minister said.

"The deal should be closed before December 5, 2016, and the money transferred to the Russian budget before December 15, 2016, in the form of Rosneftegaz dividends. Buyback of these shares by Rosneft was not specified. The document included the price and terms of the deal," Ulyukayev added.

Ulyukayev noted that the decree also state the exact number of shares, which corresponds to 19.5% of the company’s total share capital. He added that the document cancels the previous Government decree, which set approach to the minimum transaction price as the price of the initial offering in rubles or foreign currency. "It also introduces new requirements for determining the minimum price," the Minister said.

Ulyukayev said earlier that the privatization deal for a stake in Rosneft should be closed before the end of 2016 to receive the funds for the federal budget.