UPDATE: Energy min: Russia’s Rosneft must not bid for Bashneft

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MOSCOW, Aug 8 (PRIME) -- Russia’s Energy Ministry has agreed with the Economic Development Ministry that state-run oil major Rosneft should not participate in privatization of oil company Bashneft, Energy Minister Alexander Novak told reporters Monday.

Last week, Economic Development Minister Alexei Ulyukayev said that Rosneft had bid for privatization of Bashneft, but it is very unlikely that it will end on a short list of contenders as the company is an inappropriate buyer for Bashneft.

“I agree with the opinion of the Economic Development Ministry,” Novak said.

The Federal State Property Management Agency said that it agrees with the valuation of the government’s stake in Bashneft by auditor EY and will soon submit it to the Economic Development Ministry.

On August 5, First Deputy Prime Minister Igor Shuvalov said that the value of Russia’s government 50% stake in the oil company was estimated at 297–315 billion rubles. The starting price at the sale can be set at 306 billion rubles.

“As the result of expertise of a report by EY valuating the market price of the state stake in Bashneft, the Federal State Property Management Agency has no objections against the price indicated in the report. The report will be sent to the Economic Development Ministry soon to form a report to the government,” the authority said.

President Vladimir Putin earlier authorized the sale of the entire government’s 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.

(65.5627 rubles – U.S. $1)

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