CEO says privatization of Russia’s Rosneft to happen in 2016

GORKI, Moscow Region, Oct 13 (PRIME) -- Privatization of a 19.5% stake in Russian oil major Rosneft is very likely to happen in 2016, Rosneft CEO Igor Sechin told reporters Thursday.

“This is a liquid asset, and demand for on at the market is high, I am sure that we will do it,” he said.

“Speaking of the possible purchase of Rosneft’s shares and of Rosneft’s shares in general, we like shares of Rosneft. The price (of the stake) has already increased by 7.5%, our capitalization has increased by 7.5%,” he said.

The initial price of the stake will be defined by the government, but Rosneft assumes the current capitalization, he said. Given Rosneft’s Wednesday price at the Moscow Exchange of 363.15 rubles, the price of 19.5% in the company could reach 750.5 billion rubles.

On Wednesday, Rosneft’s spokesman Mikhail Leontyev told Kommersant FM radio station that the company is ready to buy its own shares from state-owned Rosneftegaz if market conditions are favorable and will wait for a government decision on the privatization scheme.

(62.5892 rubles – U.S. $1)

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