Privatization of Russia's Energy Giant Rosneft Will Not Exceed 19.5% of Shares

Russia's state-run energy company Rosneft does not plan to sell more than the 19.5 percent of its shares, Finance Minister Anton Siluanov said Friday.

MOSCOW (Sputnik) — The Russian 2016 economic development plan specifies partial privatization of state assets to support budget revenue, which has suffered due to falling oil prices. Rosneft and Bashneft oil and gas companies, the ALROSA group of diamond mining companies, VTB bank, as well as the Sovcomflot maritime petroleum and liquefied gas shipping company, are among the companies to be partially privatized.

"When we were selling 19.5 percent, it was about us having a controlling stake. If we continue to sell, then this stake will no longer be controlling," Siluanov told reporters.

A source in the Economic Development Ministry told RIA Novosti earlier in the day that the government is not ruling out the sale of an additional 10 percent of Rosneft's shares, bringing the state's stake down to 40 percent.

"I have doubts about this decision, in any case this government did not discuss these plans," Siluanov stressed.

He added that the government had included in the 2017 budget all earnings from parent company Rosneftegaz.

"We have laid out in the law that all revenues that Rosneftegaz receives from Gazprom and Rosneft will be transmitted through Rosneftegaz into the budget," the minister specified.

Russia is due to sell 19.5 percent of Rosneft shares before the end of the year.