Consolidation of Rosneft assets will mean future privatization of company - Shuvalov
BERLIN. Oct 26 (Interfax) - Russian First Deputy Prime Minister Igor Shuvalov has said he is not in agreement with the view that the purchase of TNK-BP by Rosneft could mean something about increasing state control over the Russian oil sector.
"The purchase of TNK-BP by Rosneft is not the strengthening of state control over the oil sector, inasmuch as the final terms of the deal have not yet been announced. We have only seen the general contours. But if these general contours are realized in concrete deal terms, that means that the consolidation of assets at Rosneft will mean the future privatization of the company itself. And one of the TNK-BP shareholders - BP - as a result of this operation has to become one of the Rosneft shareholders," Shuvalov told the press in Berlin on Friday during events marking the 60th anniversary of the founding of the Eastern Committee of the German Economy.
"In fact, it means the consolidation of assets within one company, and it will become the biggest oil producer, a company with the greatest possibilities, that is, with explored reserves. BP will become a shareholder, and that is very important for corporate guidance and for the privatization process. If Rosneft were to simply buy these assets, then that would be merely the absorption by a state company of a private market player. And what a very complicated and good deal that is. And the main thing would be for it to be one in those parameters, in those announced," Shuvalov said.
"We are not getting set to strengthen the influence of the state or inflate state property. State capitalism is definitely not our route. We abandoned that many years ago. Our task is the development of Russia into a modern country with state institutions and a modern diverse economy, where small and mid-sized business will prevail," Shuvalov said.
