Econ minister: Russia’s Rosneft files bid to privatize Bashneft

VIENTIANE, Aug 5 (PRIME) -- Russian oil major Rosneft has sent a bid to take part in privatization of oil company Bashneft, but being in fact a state firm Rosneft is unlikely to make it to a shortlist of potential buyers, Economic Development Minister Alexei Ulyukayev told reporters on Friday.

The privatization’s organizer is now forming a price offer for potential investors, Ulyukayev said. “After they say that they agree with this offer then the short list will be made… I think that it (Rosneft) will barely be (in the short list) because as we said, this company is a state firm in fact, and its participation in the privatization is unviable, I suppose,” he said.

On Thursday, Ulyukayev said there are nine contenders for Bashneft, including Rosneft, and the government may privatize Bashneft in September–October.

The Economic Development Ministry expects that Bashneft will be sold with a 20–30% premium to market price, Ulyukayev said. The appraiser gave Bashneft a price range estimate, he saidá adding that some media reports that Bashneft will cost investors 306 billion rubles are incorrect.

Ulyukayev also believes it is reasonable to impose a moratorium on a resale of Bashneft’s shares.

President Vladimir Putin earlier authorized the sale of the entire government stake in Bashneft to a private investor. The Federal State Property Management Agency owns 50.08% in the company, while the government of the republic of Bashkortostan has a 25% stake.

(66.3941 rubles – U.S. $1)

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