PRESS: Russia can bar foreigners from Bashneft privatization

MOSCOW, Aug 11 (PRIME) -- The Russian Economic Development Ministry has proposed selling the government’s stake in oil company Bashneft to a strategic investor at a tender, where foreigners will not be allowed, business daily Vedomosti reported on Thursday, citing two government officials and an official who participated in elaboration of the requirements.

The ministry submitted a report with the privatization terms to the government for consideration on Wednesday, the details were not disclosed.

The sources said that the draft rules also include such conditions as a lack of overdue debt, a more than 10 billion ruble revenue for 2015 and no borrowing for the deal from state banks.

The buyer will have to receive clearance for the purchase from the Federal Antimonopoly Service, elaborate a development strategy for Bashneft and make a prepayment of 10% of the starting price.

According to Vedomosti, Tatneftegaz can be barred from the purchase of Bashneft because its revenue was only 29.8 million rubles in 2015. Other competitors can have troubles with financing because of the prohibition to turn to state banks.

In May, Russian President Vladimir Putin excluded Bashneft from the list of strategically important companies and allowed the government to sell its whole stake in Bashneft.

On August 5, First Deputy Prime Minister Igor Shuvalov said that the value of the government’s 50% stake in the oil company was estimated at 297–315 billion rubles. The starting price at the sale can be set at 306 billion rubles.

(64.8137 rubles – U.S. $1)

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