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    Russian Government Approves Privatization of 19.5% of Rosneft Shares

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    The Russian government has approved privatization of 19.5 percent of energy company Rosneft's shares, but the privatization will not take place immediately.

    MOSCOW, November 30 (Sputnik) — The Russian government has approved privatization of 19.5 percent of energy company Rosneft's shares at a price no lower than the 2006 Initial Public Offering (IPO) per share, sources familiar with the situation told RIA Novosti on Sunday.

    “The government has approved privatization of Rosneft. The price should not be lower that the IPO of 2006,” the source said.

    Another source stated that the privatization will not take place immediately. Rosneft itself refused to give any comments.

    In mid-July, Russian Economic Development Minister Alexey Ulyukaev said that the government was ready to privatize 19.5 percent of Rosneft's shares at a price no lower than the initial public offering. Rosneft's IPO in July 2006 stood at $7.55 per share.

    In August, Ulyukaev confirmed the plans for Rosneft's privatization, explaining that the process will most likely go in two stages.

    Rosneft is one of the leaders in Russia's petroleum industry. The company's activities include hydrocarbon exploration and production, upstream offshore projects, hydrocarbon refining, and crude oil, gas and product marketing in Russia and abroad. Currently, the company's main shareholder (69.5 percent) is state-owned Rosneftegaz. British multinational energy giant BP owns another 19.75 percent, while the remaining 10.75 percent is publicly traded.

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    privatization, Rosneft, Alexei Ulyukayev, Russia
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