Prime Minister Dmitry Medvedev confirmed the government’s plans to privatize state blocks of shares of “Bashneft” and “Rosneft” in 2016. As reported by RIA “Novosti”, the head of government said during a meeting with Russian businessmen in the framework of international investment forum “Sochi-2016″. First Deputy Prime Minister Igor Shuvalov on the sidelines of the investment forum reported that the government does not intend to restrict the participation of “Rosneft” in the auction for the “Bashneft”.
“It is obvious that a General course on business support, development of private business, to protect private property should be, no doubt, continue to be supported by specific decisions of the state, including, but not limited to solutions, for example, on privatization. And we’re going to do it, including this year, including on some of those big, large blocks of shares, such as “Rosneft” and “Bashneft”. So keep that in mind,” Medvedev said in his speech.
The representative of the Ministry of economic development Elena Lashkina has informed RBCthat both companies are in the privatization plan for 2016.
Earlier on Friday, Russian Finance Minister Anton Siluanov told reporters that the Ministry of Finance of the Russian Federation amendments to the Federal 2016 budget takes into account the privatization of packages of “Bashneft” and “Rosneft” to the end of the year. “Yes, this year we put “Rosneft” and “Bashneft”, – he said (quoted by “Interfax”). The deficit in the current year, he said, could rise to 3.5-3.7% of GDP, its size, in particular, will depend on the structure of the deal “Bashneft”.
In mid-July, Dmitry Medvedev decided to postpone the privatization of the company for an indefinite period, and, as he told his press Secretary Natalia Timakova, the Russian President Vladimir Putin supported him. In August Timakova said that the privatization of “Bashneft” is being postponed to a later date, but sources in the government said that the sale may not take place this year.
First Deputy Prime Minister Igor Shuvalov in an interview to “Russia 24″ in early September stated that authorities have not yet determined the sequence of privatization transactions “Rosneft” and “Bashneft”, and one of the proposals involves their conjunction in a single project. The media linked it with unwillingness to aggravate the struggle of elites before the elections to the state Duma. We will remind that for participation in the privatization of “Bashneft” claims “Rosneft”, which is managed by Igor Sechin, the ally of Russian President Vladimir Putin, but a number of Russian government officials argued against, saying that the sale of shares of one state-owned other state-owned company privatization can not be named.
Today the Shuvalov said that the Russian government plans to bail out more than a trillion rubles by the end of the privatization of these two companies. “The assurances that we receive from investment consultants, we hope to receive funds in the amount of more than a trillion rubles for these both deals before the end of this year” – quoted Shuvalov “Interfax”.
According to him, if these privatization transactions take place, they will greatly improve the macroeconomic indicators, as funds from privatization of “Rosneft” will be counted in the Federal budget as budget revenues and from the sale of “Bashneft” as a source of covering the deficit of the Federal budget.
Shuvalov asked the question about who is interested in privatisation “Rosneft”. “There is interest in the form of letters, who received the investment adviser and itself “Rosneft”, these companies are now working In various reasons are unable to call (interested companies) specifically, the company is interested in purchase of small packets, but in the aggregate it will be 19.5%,” – said Shuvalov.
At the same time, Shuvalov said that “Rosneft” will not be limited to participate in the bidding for the state stake in Bashneft.
One of the main contenders for the shares of “Bashneft” the head of LUKOIL Vagit Alekperov said that he does not expect privatization of “Bashneft” in the near future. “I don’t think that in the near future will be sold “Bashneft”, because, on the one hand, the government raises taxes, on the other hand, wants the asset to sell expensive,” he said at the same forum in Sochi. “Vedomosti” at the end of August, with reference to the employee of the Federal property management Agency and Federal officials relating to privatization, reportedthat the privatization plan for 2016 is only one large company – “Rosneft”.
It was originally planned that the first will be sold Bashneft: for a controlling stake in the company, the state could gain about 300 billion rubles. But amid disputes about the possibility of participation in the transaction state-controlled Rosneft and a series of appeals of the authorities of Bashkiria, the government postponed the privatization, Shuvalov said that from now on the sale of 19.5% of “Rosneft”, and after her government will return to the privatization of “Bashneft”.
The day before Bloomberg reported that the head of “Rosneft” asks to allow its state-owned companies to buy controlling stake of JSC “Bashneft” for five billion dollars – with a significant premium to the market. In the Kremlin, commenting on the report, saidthat “the President has not taken any decision in this regard”.