UPDATE: Russia not to raise debt because of Bashneft sale postponement

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MOSCOW, Aug 17 (PRIME) -- The Finance Ministry does not plan to raise borrowing because of the postponement of Bashneft privatization, Deputy Minister Sergei Storchak said on Wednesday.

Business daily Vedomosti reported that the 2016 Russian budget includes an assumption that Bashneft will be privatized and without it budget reserves will be depleted by the end of December.

Storchak said, “This is not connected in any way.”

Medvedev’s press secretary Natalya Timakova told PRIME late Tuesday that President Vladimir Putin has supported Prime Minister Dmitry Medvedev’s decision to postpone the privatization.

“Yes, the prime minister has decided and the president approved has it – to delay privatization of Bashneft,” Timakova said.

The Federal State Property Management Agency has not yet received such instructions, its spokesperson said.

Putin earlier authorized the 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.

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