Rosneft CEO Reports Privatization Proceeds Transferred to Budget - Kremlin

According to the Kremlin spokesman, all the proceeds from the privatization of 19.5 percent of the shares have been transferred to the Russian budget.

TOKYO (Sputnik) — Rosneft CEO Igor Sechin has reported to Russian President Vladimir Putin that all the proceeds from the privatization of 19.5 percent of the shares of Russia's largest oil company have been transferred to the Russian budget, Kremlin spokesman Dmitry Peskov said Friday.

Rosneftegaz, the owner of a majority stake in Rosneft, said earlier on Friday that it had received money from the sale of 19.5 percent of Rosneft shares and was preparing to transfer 710.8 billion rubles ($11.5 billion) to the federal budget with account for instructions to avoid volatility in the country's currency market.

"Sechin told Putin that all funds had been transferred from Rosneftegaz to the budget," Peskov said.

Sechin reported to Putin on December 7 that preparation for the privatization of 19.5 percent of Rosneft's shares was over. On December 10 the transaction participants said the agreement was signed.

The buyer was a consortium of Swiss trader Glencore and Qatar's sovereign wealth fund (Qatar Investment Authority). The sum of the transaction amounted to 692 billion rubles, or 10.2 billion euros. The budget was expected to receive, as a result, 710.8 billion rubles, or 10.5 billion euros.