PRESS: Rosneft may buy Russian government’s 19.5% stake in itself

MOSCOW, Oct 5 (PRIME) -- Businessman Igor Yusyfov’s Fund Energy, which invests in oil production in Russia and the CIS, believes that Russian state-owned oil major Rosneft may buy the government’s 19.5% stake in itself, Vedomosti business daily reported Wednesday.

This plan will help the government receive 700 billion rubles, while Rosneft may sell the shares for a profit. The plan is “weird,” but it is actively discussed, and it looks like all parties win from it, the business daily reported.

“The budget needs money right now, but it is impossible to find a buyer for the asset swiftly. The Chinese are cautious and are looking back at the U.S., the Indians have just bought large oil assets and have to digest them, while European buyers will not buy it. Rosneft has U.S. $20 billion from the sale of assets and a pre-payment from the Chinese, and they may attract more money from the market,” the source told Vedomosti.

Anton Panchenkov, a partner at Goltsblat BLP, told Vedomosti that the company may buy no more than 10%, but its affiliates may buy more.

Andrei Polishchuk, an analyst at Raiffeisenbank, said that if Rosneft buys its shares from state energy holding Rosneftegaz, it may undermine its profit and dividends which the Finance Ministry needs. Rosneft had a positive cash flow of 449 billion rubles in January–June, and the company uses the money for its investment program and to pay dividends, he told the business daily.

(62.4323 rubles – U.S. $1)

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