Sechin suggests selling Rosneft 25% of NCSP - paper
MOSCOW. Feb 6 (Interfax) - Deputy Russian Prime Minister Igor Sechin is proposing the sale of 25% of OJSC Novorossiysk Commercial Sea Port (NCSP) without privatization directly to Rosneft , the business paper Kommersant wrote on Monday.
According to the paper, Sechin made proposal to Russian Prime Minister Vladimir Putin that 25% of the NCSP stock belonging to the government be sold directly and through OJSC Russian Railways (RZD) . Putin instructed federal state property fund Rosimuschestvo, the Economic Development Ministry, and the Transport Ministry with working this through.
In his letter, Sechin points out that at the present time, in line with First Deputy Prime Minister Igor Shuvalov's instructions, preparations are being made to privatize 20% of the government's stock in NCSP via Rosimuschestvo. The plan is to bring Morgan Stanley on board as consultant. The state controls 5% of the port's stock through RZD. As Sechin is reported by Kommersant to confirm that a proposal regarding the considered stake has yet to be made. On the basis of this, Sechin suggests selling NCSP stock to Rosneft directly.
"Considering NCSP's strategic significance to state interests and the changed in the structure of the capital of this business, it seems advisable to ensure the consolidation of these share stakes, comprising a blocking stake, and the subsequent of a consolidated stake in the national oil company Rosneft at a price determined by an independent appraiser," Sechin said.
"The concentration of such a stake in the hands of just one player is extremely negative," a Kommersant source said. It is incomprehensible "why there is not equal access to the state's stake, why other interested companies cannot vie for it," this source said. Former Summa President Marat Shaidayev expressed interest in 20% of the port's stock back in late November.
With Rosneft shareholder involvement in NCSP, Sechin wants to be part of its management, since he has questions about the operations of Summa and Transneft , the port's main owners, other sources said.