Russian govt to define conditions of Bashneft privatization soon

BUDYONNOVSK, Stavropol Region, Feb 16 (PRIME) -- The Russian government plans to define conditions of privatization of oil company Bashneft soon and hopes for high interest to the asset from strategic investors, including oil major Lukoil, Deputy Prime Minister Arkady Dvorkovich told reporters Tuesday.

“The government has only begun development of conditions of Bashneft’s privatization. Corresponding rulings were sent to the Economic Development Ministry, to the Federal State Property Management Agency. For now, the stake to be sold and conditions of privatization and sale are unknown,” he said.

“We will define all the elements of the process very soon. And when the government makes the decision, we expect serious interest from strategic investors, including Lukoil.”

Russia earlier nationalized a 73.94% stake in Bashneft. The Federal State Property Management Agency later boosted the stake to 75.08% and transferred a 25% stake to the government of the republic of Bashkortostan. Reuters reported earlier that the government is considering whether to sell a stake of more than 50%, or to limit the sale to 25% through a stock market offering, and that Lukoil is interested in the asset.

Lukoil CEO Vagit Alekperov said that the company is ready to take part in privatization of Bashneft and may buy a controlling stake in the company.

“If the price is acceptable and conditions are created for the company to become (Bashneft’s) operator, we are ready to study the project on equal grounds with everyone and take part in the competition and become Bashneft’s shareholder,” he said, adding that Lukoil is interested in a controlling stake in the company.

“The company (Lukoil) has not yet made an official suggestion to the government…as privatization’s conditions have not been coordinated and presented to investors yet.”

Earlier on Tuesday, Rustem Khamitov, the head of the republic of Bashkortostan, said the republic’s government will not sell its 25% stake in Bashneft.

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