Source: Russian ministry to hear Bashneft sale plan next week

MOSCOW, Aug 2 (PRIME) -- The Russian Economic Development Ministry will consider a report by organizer of privatization of oil company Basneft, VTB Capital, at the beginning of the week starting from August 8, a source with knowledge of the situation told PRIME on Tuesday.

“A meeting in the Economic Development Ministry, where a report of the consultant will be discussed, must be held at the beginning of next week in accordance with the schedule,” the source said.

The source said that the government will decide on the structure and strategy of the deal at the meeting, and a report with the conclusion by the ministry and the Federal State Property Management Agency will be sent to the government for consideration. Details of the report are not public, the source said.

Russian President Vladimir Putin earlier authorized 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.

In July, business daily Vedomosti reported, citing Director of the state property agency Dmitry Pristanskov that the government would like to sell Bashneft to one or several strategic investors rather than on the market but wants to hear ideas of VTB Capital first.

Oil companies Tatneft, Independent Oil and Gas Company, Tatneftegaz and Lukoil earlier expressed interest in the asset, while the country’s major Rosneft is allegedly not ruled out to participate as well.

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