Govt considers Rosneft privatization before 2016 - paper

MOSCOW, May 16 (Itar-Tass) - Russian Government is discussing privatization of Rosneft oil giant before 2016 - in autumn 2014 or during 2015, the Vedomosti daily reports on Wednesday with reference to its sources. The state may sell up to 19.5 percent less one stock, yet the optimal amount of the stake to be sold and sales procedure (public or private offer) will be defined by an investment bank, which is still to be picked, says the paper. Under the privatization plan until 2014-2016 adopted last summer, the Government is going to reduce its share in Rosneft to 50 percent plus 1 stock from the current 69.5 percent held by Rosneftegaz company. First Deputy Prime Minister Igor Shuvalov said the deal had been planned for 2016. Accordingly, the Finance Ministry built 423.5 billion roubles proceeds from stock sales in the draft 2016 budget as dividends from Rosneftegas, which is 100 percent owned by the Federal Agency for State Property Management (Rosimushchestvo). To choose a consulting bank, Rosimushchestvo needs the Government’s and President’s political decision to prepare for the deal, and there is none so far, says the paper. On Thursday, Rosneft’s 19.5 percent cost 469.1 billion roubles (about $13.5 billion) on the Moscow Stock Exchange. Learn more on itar-tass.com