UPDATE: Russian min sees risk of no Rosneft privatization in 2016

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MOSCOW/VIENTIANE, Aug 5 (PRIME) -- The Russian government may have no time to privatize a 19.5% stake in oil major Rosneft in 2016, Economic Development Minister Alexei Ulyukayev said Friday.

“We can have no time,” Ulyukayev said.

He said that the fulfillment of a plan to raise 1 trillion rubles for the state budget from privatization of assets in 2016 depends on the sale of the government’s stake in Rosneft.

State oil and gas holding Rosneftegaz, through which the government holds 69.5% in Rosneft, has submitted the privatization schedule to the government. The schedule envisages that the appraiser work for Rosneft must be completed by September 1.

Deputy Finance Minister Maxim Oreshkin said the Reserve Fund’s spending on covering a state budget deficit may rise by about 700 billion rubles to 3 trillion rubles in 2016 if the Rosneft privatization is postponed.

“The situation of the last few months is unique for this year and is due to the unevenness of the federal budget spending. Bearing in mind that oil prices have fallen beyond the U.S. $40 per barrel, the expected spending of the Reserve Fund money must stand at about 2.3 trillion rubles and if the terms of the Rosneft privatization are postponed, it may get close to the 3 trillion ruble notch,” Oreshkin said.

(66.3941 rubles – U.S. $1)

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