UPDATE: CEO: Russia may give 25% in Bashneft to Bashkortostan govt

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UFA, Mar 11 (PRIME) -- The Russian government may give a 25% plus several shares stake in oil company Bashneft to the government of the Bashkortostan republic, where its assets are located, CEO Alexander Korsik said Wednesday at an extraordinary general meeting of the company’s shareholders.

“The idea is that the Bashkortostan republic must receive 25% plus several shares of the company. This is a short-term issue, for several months. This is not the solution yet, this is a plan,” he said.

First Deputy Energy Minister Alexei Teksler, who participated in the meeting as a board member, said that the government will soon consider giving a 25% plus one share stake in Bashneft to Bashkortostan.

Deputy Prime Minister of the republic Dmitry Sharonov said earlier that local authorities hope to get the controlling stake of the company.

Privatization of the government’s stake in the company is not ruled out but it has not been considered so far, Teksler said.

Russia earlier nationalized a 73.94% stake in Bashneft owned by multi-industry holding AFK Sistema after a court had ruled that the oil company’s privatization by regional authorities was illegal. Later, Sistema won a case against Ural-Invest, an investment fund belonging to Ural Rakhimov, son of the former Bashkortostan republic president.

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