Minister: Russia may privatize Bashneft in September–October

VIENTIANE, Aug 4 (PRIME) -- The Russian government may privatize oil company Bashneft in September–October, Economic Development Minister Alexei Ulyukayev told reporters Thursday.

“Very soon, in September–October,” he said, adding that privatization advisor VTB Capital has provided its recommendations regarding the form of the deal.

On Wednesday, First Deputy Prime Minister Igor Shuvalov said that the preliminary valuation of Bashneft stake that will go under the hummer stands at U.S. $3 billion. Ulyukayev said that the valuation is relevant as of February.

“We valued it when the decision on privatization was made at a meeting chaired by the president in February, it was in line with the market back then. It was not the government’s valuation, we simply accepted what the market quotations showed us. The company’s quotations have significantly increased since then,” he said.

The ministry received a report from VTB Capital with the asset’s price tag, but Ulyukayev refused to disclose the price range. “There is an estimate, and I will not comment on it,” he said.

Nine companies have expressed interest in Bashneft, and no companies with direct foreign control are in the list, he said refusing to name the companies. But state-run companies should not take part in the deal, he added.

President Vladimir Putin 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. Oil companies Tatneft, Independent Oil and Gas Company, Tatneftegaz and Lukoil earlier expressed interest in the asset, while the country’s major Rosneft is allegedly not ruled out to participate as well.

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