Report: Russia’s Rosneft may buy 19.5% in itself – vice president

MOSCOW, Oct 7 (PRIME) -- Russian state-owned oil major Rosneft may buy 19.5% in itself during privatization, Vice President Mikhail Leontyev said in an interview to Business FM radio station broadcast late on Thursday.

“The corporation is seriously studying the possibility of buying its shares from the owner, I mean the government,” he said.

The practice of buying own shares is wide-spread. “This is some kind of paranoia which is taking place around privatization … We are ready to buy our shares. We like our shares. It is a simple procedure in activity of any company. Exxon often buys its shares,” he added.

On Tuesday, Vedomosti business daily reported citing businessman Igor Yusyfov’s Fund Energy that Rosneft may buy the government’s stake in itself, which will help the government receive 700 billion rubles, while Rosneft may later sell the shares at a profit.

On Thursday, the government also allowed the oil major to buy a 50.08% stake in oil company Bashneft for no more than 330 billion rubles during privatization.

(62.3900 rubles – U.S. $1)

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