Rosneft privatization would make sense before 2016, possible in 2014 - Ulyukayev
MOSCOW. Jan 27 (Interfax) - It would make sense to privatize oil Rosneft before 2016 this year, Economic Development Minister Alexei Ulyukayev said in an Interview with Interfax.
"Technically these deals are ready, the markets are currently in a better state than they were. Nobody's likely to tell you what the oil situation will be in two years' time. Right now it's good, assets are attractive. From our point of view it would make sense to do this deal earlier than scheduled in the privatization program," Ulyukayev said, adding that it might even be possible to sell a stake in the company this year.
Asked whether the proceeds received by Rosneftegaz in the sale of Rosneft shares to BP would be transferred to the budget, he said: "We hope that these funds go to the budget. That has been reported about repeatedly." But in any case, given the current budget rule, the money cannot be used for financing spending, he said.
"The same applies to the 19% Rosneft stake earmarked for sale in the state privatization plan in 2016 [and no earlier] based on those same fiscal consideration. In my view, this is not the main cause and we believe that this privatization deal could be carried out sooner," he said.
The state owns 69.5% of Rosneft via Rosneftegaz and BP has 19.5%. The government has approved privatization of 19.5% of Rosneft shares, in whole or in part.
Sale of the Rosneft stake is included in the forecast federal property privatization plan for 2014-2016, which has been approved in a government resolution under the following formulation: "Reduction of Rosneftegaz's stake in Rosndeft to 50% plus one share before 2016. Last November, First Deputy Prime Minister Igor Shuvalov said that experts on the issue had advised the government to postpone the Rosneft privatization sale to 2016. "We should be discussing the best option for the privatization and its timing with our partners. We thought previously that this might be 2015, but now the experts are saying that it might be better to hold off until 2016," Shuvalov said.
