Putin allows government to sell entire state stake in Bashneft

MOSCOW, May 17 (PRIME) -- Russian President Vladimir Putin has excluded oil producer Bashneft from a list of strategically important companies and allowed the government to sell the entire state stake in Bashneft to private investors, as seen by PRIME on the official Web portal for legal information on Tuesday.

The Russian government holds 50% plus one share in Bashneft and the government of the republic of Bashkortostan has 25% plus one share.

Economic Development Minister Alexei Ulyukayev said he believes privatization of Bashneft may take place until July. He added that an investment consultant may announce its position on the privatization by the end of May or in early June.

“There is such opportunity, it is one of three assets, which is the most ready for privatization,” he said. The ministry earlier said it planned to privatize Bashneft, VTB Bank and uncut diamond mining giant ALROSA in 2016.

The ministry earlier chose VTB Capital, a unit of VTB, to organize privatization of Bashneft.

The government has already started negotiations with potential. Russian oil major Lukoil and Alliance Oil, a unit of Russia’s Independent Oil and Gas Company of businessman Eduard Khudainatov, expressed their interest in the asset.

Bashneft CEO Alexander Korsik said earlier retention of a certain degree of control over the company by the federal government is preferable.

(64.8895 rubles – U.S. $1)

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