Putin’s spox: Rosneft’s participation in Bashneft sale ambiguous

MOSCOW, Aug 3 (PRIME) -- The Kremlin is still against participation of state companies in privatization, but the situation with oil major Rosneft’s participation in privatization of oil company Bashneft is not that simple, presidential spokesman Dmitry Peskov told reporters on Wednesday.

“Speaking of participation of state companies and state-controlled companies in privatization, we have repeatedly said that there is a dominating understanding that these companies should not take part in privatization,” he said.

When asked why Rosneft is still trying to partake in privatization of Bashneft, he said that the situation “should not be perceived as absolutely simple and linear.”

“You see, Rosneft is still a joint stock company. So there are some difficulties in estimates here. This is a stock company that operates under corporate laws. The company’s shares are trading on the markets, it has many different shareholders. But it is also state-controlled, so I say that there is understanding, but the situation should not be perceived as simple and linear. There are nuances,” he said.

Previously, First Deputy Prime Minister Igor Shuvalov valued the government’s stake in Bashneft, which is to be privatized at U.S. $3 billion. Peskov said that the Kremlin does not do valuations the companies that are to be privatized, and does not perform functions of a consulting company.

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.

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