UPDATE 3: Russia sets minimum price for 19.5% in Rosneft at 711 bln rbl

(Adds details in fourth paragraph)

MOSCOW, Nov 7 (PRIME) -- Russian state energy holding Rosneftegaz must sell 19.5% in state-owned oil major Rosneft until December 5 for at least 710.8 billion rubles, so that the budget receives the money until December 14, Economic Development Minister Alexei Ulyukayev told reporters on Monday citing a government ruling.

“The minimum price is defined on the basis of quotations as of October 11, 2016, when the synergy effect from privatization of Bashneft was priced in and the price of Rosneft’s shares increased significantly. The price in figures is 748.26 billion rubles multiplied by a 0.95 ratio, which includes a minimum discount in accordance with the usual market practice,” he said.

The deal must be closed no later than on December 5, and the budget should receive the money no later than on December 15.

But a government ruling, published earlier on Monday at the government’s Web site, sets December 15 as the deadline for settlements with a buyer, while the deadline for a transfer of money to the budget is set for December 31.

“The ruling does not envisage a buyback of the shares by Rosneft itself. The ruling only defines the price and terms of the deal,” Ulyukayev added.

First Deputy Prime Minister Igor Shuvalov said earlier that privatization in the form of a buyback is possible as a temporary measure before the sale on the market in order to attract money necessary for the 2016 budget.

(63.5043 rubles – U.S. $1)

End