UPDATE: Russian ministry may set Bashneft’s privatization terms soon

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MOSCOW, Apr 8 (PRIME) -- The Russian Energy Ministry plans to discuss privatization of oil company Bashneft with a consulting bank in the week staring from April 11, and may define privatization’s terms then, Deputy Minister Alexei Teksler told reporters Friday.

“The bank has been chosen, active work has begun, we will meet next week, and we may make the time (of privatization) clear,” he said.

But Deputy Prime Minister Arkady Dvorkovich said that consultants should submit their suggestions on Bashneft’s stake sale in several weeks. “It usually takes several weeks after all,” he said.

He declined to say whether a sale to a strategic investor or on the market will be a priority.

Bashneft CEO Alexander Korsik said that he is aware of only two possible contenders for the state share in the company – oil major Lukoil and little-known company Tatneftegaz – and only from media reports.

“I only read about this in papers, I know that Lukoil has announced that, (Lukoil’s CEO) Vagit Yusufovich (Alekperov) said that. And you know that Vedomosti (business daily) published a letter from Tatneftegaz,” Korsik said.

On Monday, the Economic Development Ministry chose only Russian investment banks to organize privatization of Bashneft, uncut diamond mining giant ALROSA and Bank VTB. The ministry official said that VTB Capital had been proposed as the organizer of the Bashneft privatization.

The Federal State Property Management Agency currently holds 50.08% in Bashneft, and the government of republic of Bashkortostan has 25% plus one share. On Thursday, Bashkortostan’s Head Rustem Khamitov said the republic will keep its stake in the company.

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