Minister sees Russia’s revenue from 2016 privatization at 800 bln rbl

BERLIN/MOSCOW, Feb 19 (PRIME) -- Russia will likely to receive 800 billion rubles from privatization of large state assets in 2016, Economic Development Minister Alexei Ulyukayev told reporters on Friday.

“About 800 billion rubles,” he said answering a corresponding question.

The state plans to sell such majors as oil producer Rosneft, Bashneft, diamond mining giant ALROSA, shipping company Sovcomflot and second-largest bank VTB, the minister confirmed.

Deputy Energy Minister Alexei Teksler suggested privatizing a controlling stake in Russian oil producer Bashneft. The best way is to maximize the company’s value and to sell a controlling stake to a strategic investor, he said.

PRIVATIZATION OF ROSNEFT

According to the Federal State Property Management Agency, Rosneft is almost ready for privatization of a 19.5% stake which belongs to state oil and gas holding Rosneftegaz.

“Rosneft will be formally sold by Rosneftegaz, and these revenues will be allocated to the budget as dividends of Rosneftegaz, or as direct revenues of the budget,” Ulyukayev said.

Earlier in February, Rosneft CEO Igor Sechin said that it is most profitable to sell a state stake in the oil producer with oil at $100 per barrel, but a lack of budget funds must be also taken into account.

Finance Minister Anton Siluanov said late 2015 that a 19.5% stake in Rosneft may cost 500 billion rubles.

The government owns 69.5% in Rosneft and U.K.-registered BP Russian Investments Limited holds a 19.75% stake in the company.

DEPUTY PM: SELLING STAKE IN ALROSA UNPROFITABLE NOW

Deputy Prime Minister Yury Trutnev said that ALROSA is unlikely to be privatized soon.

“I do not think that ALROSA must be sold soon. And it is obvious why. An opportunity to sell the company means receiving several dozens of billion rubles, but the company’s EBITDA (earnings before interest, taxes, depreciation and amortization) exceeds 100 (billion rubles), and that is why it means selling a milking cow,” Trutnev said.

“If we actually need money so much, we must adjust requirements and oblige the company to pay not 35%, but 70% (of its net profit in dividends), for example, during two years. Frankly speaking, the company will manage to do it,” he said.

“One last thing, each sale of a stake below a controlling one is a sale with a discount relative to the market. So we will lose twice: economically and lose volumes of the stake.”

(75.4575 rubles – U.S. $1)

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