• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 1 hour Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 20 mins Renewables provided only about 4% of total global energy needs in 2018
  • 3 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 2 days Iran Captures British Tanker sailing through Straits of Hormuz
  • 1 day EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 13 hours Shale Oil will it self destruct?
  • 1 hour Today in Energy
  • 3 days Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 days Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 9 hours So You Think We’re Reducing Fossil Fuel? — Think Again
  • 3 hours N.Y. Governor Signs Climate Bill
  • 2 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 3 days LA Solar Power/Storage Contract
  • 19 hours U.S. Administration Moves To End Asylum Protections For Central Americans

Russia Resumes Bashneft Privatization To Plug Budget Gap

Bashneft privatization

Russia will resume the procedure to sell its controlling stake in oil firm Bashneft, First Deputy Prime Minister Igor Shuvalov said on Friday - less than two months after Moscow had decided to postpone the privatization – signaling that Russia needs some cash to fill in its depleting coffers.

The Russian government is also immediately taking steps to prepare the sale of 19.5 percent in Rosneft, Shuvalov said at a meeting with investors in Sochi, whose transcript was posted on the government website.

In August of this year, reports were circulating that Russia may delay the privatization of a stake in Rosneft, to hold out for higher prices.

On Friday, Shuvalov said that Russia hopes to receive more than US$15.9 billion (1 trillion rubles) from these transactions by the end of this year. Should those privatization deals take place, they would allow Russia to considerably improve its macroeconomic indicators, Shuvalov said. The proceeds from the Rosneft privatization will be counted as federal budget revenues, and the proceeds from the Bashneft sale will help to cover the federal budget deficit, the Russian government official added.

Shuvalov also said that Rosneft would not be prevented from bidding to buy the Bashneft stake that is up for sale.

Two months ago, when Russia decided to postpone the sale of the stake in Bashneft, market conditions were not the only reason - according to market talk - and the rivalry between Rosneft and Lukoil over the purchase of Bashneft was also a factor.

But now, widening budget gaps are pushing Russia to proceed with the sales of the Bashneft and Rosneft stakes.

On Monday, Reuters quoted a Russian government source as saying “money is needed urgently”. Another source in the government has said: “The sale of Bashneft to Rosneft is a done deal.”

According to Shuvalov, foreign investors have expressed interest in buying into Rosneft, while Bashneft has attracted mostly Russian bidders.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play