Privatization Deals Significantly Increase Russia's Investment Attractiveness

Privatization deals, including the sale of 19.5 percent of Russian energy giant Rosneft, significantly increase Russia's investment attractiveness, Prime Minister Dmitry Medvedev said Friday.

OULU (Sputnik) — Rosneft CEO Igor Sechin informed Russian President Vladimir Putin on December 7 that the government stake in the company had been sold to a consortium of mining group Glencore and Qatar's sovereign wealth fund for 10.5 billion euros (some $11.3 billion).

"As a result of the deal and previous deals, the investment attractiveness of Russian assets and the Russian economy is changing significantly," Medvedev said at a news conference following talks with his Finnish counterpart Juha Sipila.

He added that talks on the Rosneft deal had been held with companies from Japan, South Korea, Europe and the Middle East, but that the proposal by Glencore and Qatar's fund was the best.

Medvedev said the parameters of the deal on Rosneft privatization made it possible for Russia's budget to receive the required funds, adding that the transaction's value was more than initially planned.

"The agreed sum is more than initially planned," the Russian premier said, adding that this meant successful work of Rosneft and the government.

Medvedev also said he had given instructions to work out benefits on a number of Rosneft deposits.