UPDATE: Min to see sale of 3 large Russian state assets in 2016 as success

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BRATISLAVA, May 24 (PRIME) -- It would be a success if Russia privatizes at least three out of five large state assets – uncut diamond mining giant ALROSA, VTB Bank, shipping company Sovcomflot, oil companies Rosneft and Bashneft – in 2016, Economic Development Minister Alexei Ulyukayev told reporters Monday.

“I would like us to sell at least one asset in the first half of the year. And I would view it as a success if we (sell), say, three assets until the end of the year,” he said.

Ulyukayev said that a 10.9% stake in ALROSA may be sold on the Moscow Exchange until the end of June, and did not rule out that future placements of ALROSA’s shares could take place on foreign floors, including Asian ones.

“It may happen with future placements, future packages. Still, we want to place the 10.9% stake, which we have a right to offer to the market under the presidential decree, on the Moscow Exchange. We are ready for that,” he said.

As for VTB Bank and Bashneft, there are windows for their privatization in September–November, he said. “But this is a subtle issue, as VTB is under restrictions due to the sanction regime. Though these restrictions do not cover sales of issued shares, you know that investors are afraid of these risks. This is a precise work. I am not ready to say how this will end,” he said.

No new bids were filed for Bashneft, he added. “We had two written petitions from Tatneftegaz and Independent Oil and Gas Company, and had one verbal petition from Lukoil. This is what we are working with,” Ulyukayev said.

Speaking of Rosneft, he said that the cost of a 19.5% stake in the company, which is to be privatized, had exceeded 700 billion rubles. It would be difficult to limit Russia’s budget deficit at 3% of gross domestic product (GDP) in 2016 without the sale of the stake, he said

In the case with Rosneft, the money from its privatization will directly go to the budget and help it to narrow the deficit, he said.

The Russian government has not made a decision on privatization of Russian Railways, but it will definitely not be held in 2016, he said.

(67.0475 rubles – U.S. $1)

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